OSB Group is on track to deliver its 2022 full year guidance of c.10% underlying net loan book growth, its latest trading updates shows.
The Group saw underlying and statutory net loans increase by 7% in the nine months to 30th September 2022, to £22.4bn and £22.5bn respectively.
Meanwhile, organic mortgage originations surged to £1.6bn in the three months to 30th September 2022, up 53% from £1.1bn in the equivalent period in 2021.
Andy Golding, CEO of OSB GROUP PLC, said: “The Group delivered a strong performance in the third quarter, despite the backdrop of macroeconomic instability and rising interest rates, demonstrating the resilience of our business model.
“Our focus as always is on helping our customers who may be impacted by the rising cost of living and borrowing, and we are ready to provide appropriate support if required.
“The Group’s customer franchises performed well during the quarter. We saw healthy growth in our deposit book as our savers benefitted from our consistently fair savings proposition.
“Organic mortgage originations increased 53% on the equivalent period in 2021, as we converted our strong pipeline. Our prudent loan to values and high average interest coverage ratios, combined with the majority of borrowers being on fixed rate products, reflect the strength of our portfolio.
“The credit performance of our borrowers remained strong, with stable three months plus arrears, however we continue to review our forward looking macroeconomic scenarios in light of ongoing instability in the UK outlook. The continued strong performance of the Group gives me confidence to reconfirm the guidance for 2022, which we provided at the time of the interim results.
“Looking ahead, whilst the outlook for the UK economy and the overall shape and size of the mortgage market is somewhat unclear, the fundamental drivers of demand in the private rented sector remain robust.
“Our strong capital and liquidity position, secured loan book and proven risk management capabilities, as well as our focus on professional and portfolio landlords, position us well to navigate this challenging period and continue to generate attractive and sustainable returns for shareholders across the cycle.”
