OneSavings Bank plc (OSB), has published a trading update for the period from 1 July 2016 to date.
It has reported underlying loan book growth of 13% for the nine months to September 2016, excluding the impact of the Rochester disposal of c. £220m of mortgages.
Net loans and advances grew by £466m to £5.6bn during the period.
OSB said its margins on £510m of organic origination in the third quarter remained strong. Net interest margin to the end of the third quarter continued to be in line with its expectations.
The lender completed the purchase of a first charge residential mortgage portfolio of c. £60m on October 31 2016, at a discount to par. The mortgages are predominantly owner occupied and well diversified across the UK.
The Group has drawn £626m under the Funding for Lending Scheme (FLS) to date and intends to commence drawing from the new Term Funding Scheme (TFS) during the fourth quarter.
Andy Golding, CEO of OneSavings Bank, said: “I am extremely pleased with the performance of the business this year. Application levels for the second half to date are significantly in excess of the first half and our pipeline of new business is at a record level. This means we remain confident of achieving our net loan book growth target for this year and double-digit growth into 2017.”
