REG-ONE Savings Bank PLC : Trading Statement <Origin Href="QuoteRef">OSBO.L</Origin>

OsbAnnouncement

11/05/2016 07:05

OneSavings Bank plc: Trading update 
 
 Published: 11.05.2016 07:00:00 BST 
 
 OneSavings Bank plc 
 
 Trading update 
 
             
 
 OneSavings Bank plc ('OSB'), the specialist lending and retail savings group,
today issues its trading update for the period from the 1 st January 2016 to
date.  
 
 Highlights 
 
* Strong financial and operational performance has continued   
   
* Net loans & advances grew by £460m during the first quarter, driven by
further strong organic origination and accelerated by acquisitions of first
and second charge residential mortgage portfolios totalling £131m   
   
* Margins on £627m of organic origination in the quarter remained strong. Net
interest margin in the first quarter was in line with our expectations and we
remain confident in our guidance of around 300bps for the full year 
 
 
* Cost:income ratio remains excellent. We anticipate the full year ratio to be
in line with or slightly higher than the 26% achieved in 2015, as previously
guided 
   
* Despite the introduction of the bank tax surcharge, return on equity was
strong in the first quarter and we are on track to deliver a return
comfortably ahead of our financial target 
   
* The Group has drawn £576m under the Funding for Lending Scheme (FLS) to
date. We are targeting a minimum drawdown of c. £700m in 2016 
   
* Business growth continues to be supported by a robust capital position 

 
 Andy Golding, CEO of OneSavings Bank, said: 
 
 "I am extremely pleased with the performance of the business so far this
year. We achieved strong levels of new business in the first quarter with
£627m of organic origination at attractive margins, supported by acquisitions
of £131m. 
 
 As expected, March was a record month as we fulfilled heightened demand to
accelerate mortgage completions ahead of stamp duty changes. Intermediary
focus has now returned to new applications and we are confident in achieving
our full year growth targets. 
 
 We remain confident in the outlook for 2016." 
 
 Enquiries: 
 
 OneSavings Bank plc 
 
 Alastair Pate t: 01634 838 973 
 
 Brunswick Group 
 
 Robin Wrench / Simone Selzer t: 020 7404 5959 
 
 About OneSavings Bank plc 
 
 OneSavings Bank plc ('OSB') began trading as a bank on 1 February 2011 and
was admitted to the main market of the London Stock Exchange in June 2014
(OSB.L). OSB joined the FTSE 250 index in June 2015. 
 
 OSB is a specialist lending and retail savings group authorised by the
Prudential Regulation Authority, part of the Bank of England, and regulated by
the Financial Conduct Authority and Prudential Regulation Authority. 
 
 OSB primarily targets underserved market sub-sectors that offer high growth
potential and attractive risk-adjusted returns in which it can take a leading
position and where it has established expertise, platforms and capabilities. 
These include private rented sector Buy-to-Let, commercial and semi-commercial
mortgages, residential development finance, bespoke and specialist residential
lending and secured funding lines. OSB originates organically through
specialist brokers and independent financial advisers.  It is differentiated
through its use of high skilled, bespoke underwriting and efficient operating
model. 
 
 OSB is predominantly funded by retail savings originated through the long
established Kent Reliance name, which includes online and postal channels, as
well as a network of branches in the South East of England. Diversification of
funding is currently provided by securitisation and participation in the
Funding for Lending Scheme. 
 

 This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients. 
 The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein. 
 Source: ONE Savings Bank PLC via Globenewswire 
 HUG#2011419