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OSB - OneSavings Bank News Story

445p 43.0  10.7%

Last Trade - 13/12/19

Sector
Financials
Size
Mid Cap
Market Cap £1.98bn
Enterprise Value £512.0m
Revenue £304.7m
Position in Universe 301st / 1841

UPDATE 1-OneSavings, Charter Court grow loan books in first result after merger

Wed 13th November, 2019 8:08am
(Adds details on margins, forecast, CEO comment, background)
    Nov 13 (Reuters) - OneSavings Bank Plc  OSBO.L  and Charter
Court Financial on Wednesday said they expect to report bigger
loan portfolios for the full year, as both the lenders' loan
books swelled in their first set of results after completing
their merger. 
    Lending franchises of both banks were performing "very
well", OneSavings said. The lender has focused on providing
mortgage credit to professional landlords and tightened lending
criteria, which has shielded it from major impact of Brexit. 
    However, margins at the banks have been pressured due to
uncertainty ahead of Britain's planned exit from the European
Union, which is weighing on their mortgage business as homes
values dip and consumers put off major spending amid slack
sentiments. 
    The bank said its annual net interest margin, a key measure
of profitability, would roughly be flat compared to last year,
while Charter Court expects it to be slightly lower than the
first half.  urn:newsml:reuters.com:*:nGNEbVtsm4
    "We remain cognisant of the continued uncertain
macroeconomic and political outlook, however we believe that as
a combined business we are well placed to continue to deliver on
our strategy and generate attractive shareholder returns through
the cycle," OneSavings Chief Executive Andy Gilding said. 
    2020 could pose challenges as possible interest rates cuts
by the Bank of England could hurt banks' margins as the central
bank looks to ward off an economic slowdown and ease headwinds
as the fourth Brexit deadline of Jan. 31 approaches. 
    OneSavings' loan book rose 15% to 10.3 billion pounds 
($13.18 billion) in the nine months ended Septa. 30, with
Charter Court reporting a 4% growth in the same period. 
    OneSavings continues to expect to grow its loan books in the
high-teens rate for 2019, while Charter Court's portfolio is
forecast to grow in the high-twenties range.  
        

($1 = 0.7815 pounds)

 (Reporting by Pushkala Aripaka in Bengaluru; Editing by Aditya
Soni)
 ((Pushkala.A@thomsonreuters.com; Twitter: @pushkala_a; within
UK: +44 20 7542 1810, outside UK: +91 80 6749 6633;))

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