OSB Group has reported steady progress in the first nine months of 2025, with performance in line with expectations and on track to meet its full-year guidance.
The specialist lender’s net loan book rose by 1.8% to £25.6bn as at 30 September, supported by a 19% increase in new lending to £3.4bn. Excluding the sale of a £130m second charge mortgage portfolio in September, the net loan book would have grown by 2.3%.
Total assets were up 2.4% to £31bn, while retail deposits climbed 6% to £25.3bn.
The group, which includes Kent Reliance, Precise Mortgages and InterBay, said originations in higher-yielding lending areas outpaced buy-to-let business during the period, reflecting its ongoing strategy to rebalance towards more profitable sub-segments.
Credit quality remained stable, with three-month-plus arrears unchanged at 1.7%. The group’s Common Equity Tier 1 capital ratio stood at a robust 15.8%, despite a £100m share buyback launched earlier in the year, of which £67.7m had been completed by early November.
Chief executive Andy Golding (pictured) said the group had performed resiliently through the first three quarters of the year. He said: “We have delivered in line with our plan and we are on track for the full year 2025 net interest margin, administrative expenses, loan book growth and return on tangible equity guidance.”
He added: “Our lending franchise performed well as we continued to exercise discipline and optimise returns. In our buy-to-let segment we remained focused on professional landlords refinancing or adding to their portfolios.
“The new residential products launched in the second quarter have been gaining traction and we have seen good origination volumes in our higher-yielding sub-segments.”
The group completed a £578m securitisation of owner-occupied prime mortgages in September under its Canterbury Mortgage Finance programme, achieving what Golding described as “our best-ever pricing for this transaction”. He said OSB would continue to manage funding costs by balancing retail savings with alternative funding sources.
OSB also reported progress on its transformation programme, which includes a new digital savings platform and an updated lending platform under the Rely brand. The first tranche of easy access accounts has been migrated to the new savings system, with further transfers due in the coming weeks.
Golding said the buy-to-let mortgage market remained subdued but added: “The fundamentals of the UK private rented sector are strong. We are focused on making progress through the transition period to deliver on our medium-term aspirations, with positive outcomes for our stakeholders and strong returns for our shareholders.”
