OSB Group has reported its preliminary results for the year ended 31st December 2024, showing growth in both underlying and statutory profits.
Underlying profit before tax rose by 4% to £442.9m, while statutory profit before tax increased by 12% to £418.1m.
The group experienced a decrease in both underlying and statutory net loan books due to a £1.25bn securitisation transaction in December.
Without this transaction, the underlying net loan book would have grown by 2.5% since the previous year.
Net interest margin dropped to 2.30% and 2.21% for underlying and statutory, respectively, due to an adverse effective interest rate adjustment and other factors.
The cost-to-income ratios increased to 37% on an underlying basis and 39% on a statutory basis, driven by ongoing investment in the transformation programme and new costs like the Bank of England levy.
The loan loss ratios were negative, due to an improved house price outlook.
Basic earnings per share increased to 82.2 pence on an underlying basis and 77.6 pence on a statutory basis.
The group also completed £100m in share repurchases, which contributed to the increase.
A new £100m share repurchase programme will start on 14th March 2025.
The total dividend for 2024 is 33.6 pence per share, with a final dividend recommended at 22.9 pence per share.
Andy Golding (pictured), CEO of OSB Group, said: “The results delivered by OSB Group in 2024 demonstrate the strong fundamentals which underpin our business and also the focused and disciplined strategic choices made in the year by the Board and management that will shape the group’s future.
“The group’s actions are delivering results, with an improved and attractive blended front book margin for new business originated in 2024, and progress with the planned increase in diversification into our well-established higher yielding specialist segments.”
Golding added: “Today, we also set out our medium-term aspirations building on our actions over the next two years where we will focus on growing across all our segments and in particular increasing origination volumes where yields are strong and sustainable such as commercial lending, asset finance, development finance and bridging.
“The group remains well capitalised, with strong liquidity and a high-quality secured loan book.
“We remained focused on delivering good outcomes for our stakeholders and strong returns for our shareholders.”
