OneSavings Bank (OSB)

Sector:

Financials

Index:

FTSE 250

372.40p
   
  • Change Today:
    -17.20p
  • 52 Week High: 447.40
  • 52 Week Low: 313.60
  • Currency: UK Pounds
  • Shares Issued: 245.28m
  • Volume: 1,083,146
  • Market Cap: £913.41m
  • RiskGrade: 282
  • Beta: 0.23

OneSavings Bank full-year profit up 21%

By Michele Maatouk

Date: Thursday 15 Mar 2018

LONDON (ShareCast) - (ShareCast News) - OneSavings Bank posted a 21% jump in full-year profit on Thursday as the loan book grew and the company said it kicked off 2018 with a strong pipeline of new business, but guidance on margins disappointed.
In the year to the end of December 2017, underlying pre-tax profit rose to £167.7m from £138.2m, while the loan book was up 23% to £7.3bn, driven by 14% growth in gross originations to £2.6bn. On a statutory basis, pre-tax profit increased to £167.7m from £163.1m.

Meanwhile, the net interest margin was stable at 316 basis points and the return on equity remained strong at 28% versus 29% in 2016. Underlying basic earnings per share were up 23% to 51.1p and the challenger bank recommended a final dividend of 9.3p per share, taking the full-year dividend to 12.8p.

Chief executive officer Andy Golding said: "I am delighted that OneSavings Bank has delivered another excellent set of results for 2017, whilst successfully negotiating significant regulatory and tax changes in our core buy-to-let market.

"Despite market sentiment linked to political and economic uncertainty going forward, we entered 2018 with a strong pipeline of new business in our core markets and intend to deploy our proven credit risk and operational competencies to expand our residential and commercial product offerings in 2018."

The company said it expects to deliver net loan book growth in the mid-teens in 2018 and net interest margin of around 3%, down from 3.16% on the back of the rising cost in retail funding due to the end of the term funding scheme and spread pressure in particular on five-year fixed buy-to-let loans, where pricing has not reflected base rate increases.

In addition, it expects anticipate a cost to income ratio of around 30% for this year, reflecting the significant increase in the cost of regulation and planned investment in the business to support its growth strategy.

Canaccord Genuity said EPS was ahead of its expectations, but implied net interest margin compression from 3.16% to around 3% in 2018 is "significant" and "disappointing".

At 0911 GMT, the shares were down 3.5% to 392p.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

OneSavings Bank Market Data

Currency UK Pounds
Share Price 372.40p
Change Today -17.20p
% Change -4.41 %
52 Week High 447.40
52 Week Low 313.60
Volume 1,083,146
Shares Issued 245.28m
Market Cap £913.41m
Beta 0.23
RiskGrade 282

OneSavings Bank Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
37.46% above the market average37.46% above the market average37.46% above the market average37.46% above the market average37.46% above the market average
23.94% above the sector average23.94% above the sector average23.94% above the sector average23.94% above the sector average23.94% above the sector average
Price Trend
31.1% below the market average31.1% below the market average31.1% below the market average31.1% below the market average31.1% below the market average
8.72% below the sector average8.72% below the sector average8.72% below the sector average8.72% below the sector average8.72% below the sector average
Income
67.35% above the market average67.35% above the market average67.35% above the market average67.35% above the market average67.35% above the market average
45.88% above the sector average45.88% above the sector average45.88% above the sector average45.88% above the sector average45.88% above the sector average
Growth
52.53% above the market average52.53% above the market average52.53% above the market average52.53% above the market average52.53% above the market average
21.95% above the sector average21.95% above the sector average21.95% above the sector average21.95% above the sector average21.95% above the sector average

What The Brokers Say

Strong Buy 10
Buy 1
Neutral 1
Sell 0
Strong Sell 0
Total 12
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

OneSavings Bank Dividends

  Latest Previous
  Interim Final
Ex-Div 29-Aug-19 21-Mar-19
Paid 20-Sep-19 15-May-19
Amount 4.90p 10.30p

Trades for 18-Oct-2019

Time Volume / Share Price
16:35 273,268 @ 372.40p
16:29 125 @ 371.20p
16:29 162 @ 370.80p
16:29 226 @ 371.20p
16:29 274 @ 371.20p

OneSavings Bank Key Personnel

CEO Andy Golding
CFO April Talintyre

Top of Page