OSB Group plc (LSE: OSBG) has announced its results for the six months to 30 June 2025, delivering a resilient performance despite market headwinds.
The Group recorded a pre-tax profit of £192.3m, down 20% year-on-year, reflecting lower net interest income and fair value losses on financial instruments.
Net loans and advances grew by 1.2% to £25.4bn, supported by a 10% uplift in originations to £2.1bn, with strong momentum in higher-yielding segments including commercial, asset finance, residential development and bridging.
Buy-to-let lending remained the largest portion of the portfolio at 69%, though broadly flat in volume.
Net interest income was £337.0m, with a net interest margin of 230bps. The Group’s return on tangible equity came in at 13.7%, while basic EPS was 37.3p.
Administrative expenses rose 4% to £131.4m, reflecting investment in the Group’s transformation programme, including the soft launch of its new lending platform and Rely brand for buy-to-let investors.
The Group remains strongly capitalised, with a CET1 ratio of 15.7% and retail deposits up 3% to £24.6bn. The Board declared an interim dividend of 11.2p per share, up 5% on H1 2024, in line with its dividend policy.
Group CEO Andy Golding said: “The Group’s results for the first half of 2025 demonstrate resilient financial performance in line with expectations, alongside strategic progress in our two-year transition programme.
“With a high-quality secured loan book, strong liquidity and a clear focus on diversification, we are on track to deliver on our full-year guidance and medium-term aspirations.”
