OneSavings Bank (OSB)

Sector:

Financials

Index:

FTSE 250

383.00p
   
  • Change Today:
      10.60p
  • 52 Week High: 447.40
  • 52 Week Low: 313.60
  • Currency: UK Pounds
  • Shares Issued: 245.28m
  • Volume: 852,262
  • Market Cap: £939.41m
  • RiskGrade: 282
  • Beta: 0.23

Charter Court and OneSavings rise after confirming merger talks

By Oliver Haill

Date: Monday 11 Mar 2019

LONDON (ShareCast) - (Sharecast News) - Challenger banks Charter Court Financial Services and OneSavings Bank confirmed that they are in advanced talks about a potential merger to create a "leading specialist mortgage lender in the UK".
The deal would be structured so that OSB would acquire Charter Court and its shareholders would end up with 55% of the enlarged group, with OSB chief executive Andy Golding continuing in that role.

A merger of OSB, which floated in mid-2014, and Charter Court, which joined in 2017, would create a group with a market cap of around £1.6bn, a loan book of around £15.5bn and offers, the pair said, "compelling strategic and financial rationale".

Directors of the two lenders said the merger would enable the enlarged group to "establish a well-balanced, resilient and diversified retail-wholesale funding platform" and maintaining two independent broker distribution platforms.

Activist investor Elliott is Charter Court's largest shareholder, with a 31.6% stake, while Merian Global Investors, the former Old Mutual Global Investors that was bought out in 2018, holds stakes in both companies and is OSB's biggest shareholder, with 15.2%, plus owns 18.5% of Charter Court.

Charter Court operates through three brands, online-based Charter Savings Bank, residential and buy-to-let specialist Precise Mortgages and Exact Mortgage Experts, which administers mortgages originated by Precise and some third parties, also offering portfolio pricing services and credit consultancy to institutional clients.

OSB also offers lending and retail savings franchises, with its Kent Reliance online and postal savings arm and lending focused on buy-to-let, commercial and semi-commercial mortgages, residential development finance, bespoke and specialist residential lending and secured funding lines.

Analyst Gary Greenwood at broker Shore Capital said: "Overall, we view this proposed combination as relatively unsurprising given the strong similarities between the two organisations. The terms appear reasonably sensible to us given that we currently see similar upside to fair value for both stocks (of around 50%).

"Execution risk should also be relatively low, in our view, given the similarities between the two organisations and the fact that the deal appears to have been proposed on friendly terms. We see the likelihood of an interloper or alternative bidder for either company appearing as being low."

With both OSB and Charter Court operating in the "very unfashionable and unloved" BtL mortgage space, Numis saw strong potential for synergies even though both are growing rapidly and both have market leading levels of operating efficiency.

Investec said the pair were the "two cheapest and (in our view) the two most outstanding banks in our coverage", with CEO Golding "highly regarded".

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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 383.00p
Change Today 10.60p
% Change 2.85 %
52 Week High 447.40
52 Week Low 313.60
Volume 852,262
Shares Issued 245.28m
Market Cap £939.41m
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
42.63% above the market average42.63% above the market average42.63% above the market average42.63% above the market average42.63% above the market average
21.13% above the sector average21.13% above the sector average21.13% above the sector average21.13% above the sector average21.13% above the sector average
Price Trend
17.13% below the market average17.13% below the market average17.13% below the market average17.13% below the market average17.13% below the market average
2.01% below the sector average2.01% below the sector average2.01% below the sector average2.01% below the sector average2.01% below the sector average
Income
69.91% above the market average69.91% above the market average69.91% above the market average69.91% above the market average69.91% 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
52.72% above the market average52.72% above the market average52.72% above the market average52.72% above the market average52.72% 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 21-Oct-2019

Time Volume / Share Price
16:35 286,189 @ 383.00p
16:29 708 @ 381.80p
16:29 700 @ 381.60p
16:29 84 @ 381.80p
16:29 285 @ 382.00p

OneSavings Bank Key Personnel

CEO Andy Golding
CFO April Talintyre

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