REG-Q1 Trading Update

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LEI: 213800ZBKL9BHSL2K459

Published: 30.04.2026

OSB GROUP PLC
Trading update for the first quarter to 31 March 2026

OSB GROUP PLC (the Group), the specialist lending and retail savings group,
today issues its trading update for the period from 1 January 2026 to date. 

The Group delivered a resilient financial performance combined with strategic
progress in the first quarter of 2026. The Group continues to operate broadly
in line with 2026 guidance.

Performance for the three months to 31 March 2026

 £m                    31-Mar-2026  31-Dec-2025  Change   
 Net loan book         26,153.9     25,920.6     0.9%     
 Total assets          30,975.3     31,122.7     (0.5)%   
 Retail deposits       24,698.4     24,251.1     1.8%     
                                                          
 CET1 ratio, % (1)     15.1         15.8         (70)bps  
 3 months+ arrears, %  1.7          1.7          -        
                                                          

1. Unaudited and includes Q1 2026 unverified profits net of foreseeable
dividend and other charges



Financial highlights: Resilient delivery in the second transition year
* Net loan book increased by 0.9% or £233m in the first three months of 2026
supported by an 11% increase in originations to £1.2bn (Q1 2025: £1.1bn)
with good growth in Buy-to-Let and Residential as well as continued growth in
the higher-yielding sub-segments.


* Retail deposits increased by 1.8% or £447m and the Group repaid £350m of
ILTR drawings with an outstanding balance of £1.15bn at the end of March (31
December 2025: £1.5bn) in line with the Group’s liquidity requirements.


* This contributed to lower total assets as the Group optimised its liquidity
portfolio in the period.


* Three months plus arrears balances remained at 1.7% with ongoing strong
credit quality of the loan book in the first quarter. The Group’s IFRS 9 ECL
modelled provisions increased marginally in the quarter reflecting the updated
macroeconomic scenarios.


* The CET1 ratio remained robust at 15.1%, reflecting resilient financial
performance in the first quarter after the £100m share repurchase programme
announced in March.


 * RWAs grew by 0.6% compared to a 0.9% growth in the net loan book,
reflecting an increase in Buy-to-Let net loans in the quarter.


* The Group repurchased £30.2m worth of shares under the £100m share
repurchase programme(2) announced in March which is due to complete no later
than 6 March 2027.
2. As at market close on 28 April 2026



Andy Golding, CEO of OSB GROUP PLC, said:

“The Group delivered a resilient financial performance in the first quarter
of 2026 and we continue to operate broadly in line with our 2026 guidance.

The Group’s lending franchise performed as expected in the first quarter.
Buy-to-Let originations under our Rely brand were strong, supported by an
increase in market activity at the start of the year. We continued to tailor
our specialist Residential mortgage products to the needs of our borrowers by
introducing several key policy criteria and saw increased originations in the
first quarter. At the end of April, our net loan book growth was in line with
our expectations.

Supported by our new technology platforms, we were able to more effectively
manage the impact of the rapid movements in swap rates in the first quarter.
We were agile in repricing products, protecting margins and returns while
ensuring we remained present in the market for our customers. Our timely
actions resulted in the blended cost of new retail funding being in line with
our expectations in the quarter. As set out at our 2025 full year results, our
2026 NIM guidance is partially dependent on the cost of retail funding
normalising throughout the rest of the year.

We also made good progress on transformation as the programme entered its
penultimate year. Final stages of testing are underway ahead of the launch of
Residential mortgages on the new lending platform in the third quarter. We
have continued migrating Kent Reliance easy access savings accounts and fixed
rate bonds onto the new platform, extending its benefits to more of our
savers. We will add ISA products onto the new platform for new Kent Reliance
savers and will launch a new savings app later in the year.

Looking ahead, we are mindful of the ongoing uncertain geopolitical situation
and its impact on the UK economy, the wider mortgage market and borrowers’
affordability. In response, we are carefully managing the composition and
growth of our loan book, with a continued focus on protecting returns whilst
ensuring that our modelled IFRS 9 ECL provisions reflect the macroeconomic
scenarios as they evolve.

We are making progress through the second year of the transition period to
deliver on our medium-term aspirations, with positive outcomes for our
stakeholders and strong returns for our shareholders.”

Summary of 2026 guidance:

 Loan book growth           Broadly similar to 2025  
 Net interest margin        circa 225bps             
 Administrative expenses    c.£280m (3)              
 Return on tangible equity  Low teens                
 Dividend per share         5% increase from 2025    

3. Additional costs related to the new CEO transition and buyout are not
included

Enquiries:

OSB GROUP PLC, Investor
Relations                                Brunswick
Group 
Alexander Holcroft/Monika Ziober/Richard Treacher             Robin
Wrench/Simone Selzer

t: 01634 838 973                                         
                          t: 020 7404 5959

                        

About OSB GROUP 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. On 4 October 2019, OSB
acquired Charter Court Financial Services Group plc (CCFS) and its subsidiary
businesses. On 30 November 2020, OSB GROUP PLC became the listed entity and
holding company for the OSB Group. The Group provides specialist lending and
retail savings and is authorised by the Prudential Regulation Authority, part
of the Bank of England, and regulated by the Financial Conduct Authority and
Prudential Regulation Authority. The Group reports under two segments,
OneSavings Bank and Charter Court Financial Services.

OneSavings Bank (OSB)
OSB primarily targets 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 and asset finance.
OSB originates mortgages organically via specialist brokers and independent
financial advisers through its specialist brands including Rely and InterBay
Commercial. It is differentiated through its use of highly skilled,
experience-based underwriting and efficient operating model. OSB is
predominantly funded by retail savings originated through the long-established
Kent Reliance name, which takes deposits online and through a network of
branches in the South East of England. Diversification of funding is currently
provided by securitisation programmes and the Bank of England’s funding
facilities.

Charter Court Financial Services Group (CCFS)
CCFS focuses on providing specialist residential and bridging lending and
retail savings products. It operates through its brands: Precise and Charter
Savings Bank. It is differentiated through risk management expertise and
technology and systems, ensuring efficient processing, strong credit and
collateral risk control and speed of product development and innovation. 
CCFS is predominantly funded by retail savings originated through its Charter
Savings Bank brand. Diversification of funding is currently provided by
securitisation programmes and the Bank of England’s funding facilities.

Important disclaimer

This document should be read in conjunction with any other documents or
announcements distributed by OSB GROUP PLC (OSBG) through the Regulatory News
Service (RNS).

This document is not audited and contains certain forward-looking statements
with respect to the business, strategy and plans of OSBG, its current goals,
beliefs, intentions, strategies and expectations relating to its future
financial condition, performance and results, and ESG ambitions, targets and
commitments described herein. Such forward-looking statements include, without
limitation, those preceded by, followed by or that include the words
‘targets’, ‘believes’, ‘estimates’, ‘expects’, ‘aims’,
‘intends’, ‘will’, ‘may’, ‘anticipates’, ‘projects’,
‘plans’, ‘forecasts’, ‘outlook’, ‘likely’, ‘guidance’,
‘trends’, ‘future’, ‘would’, ‘could’, ‘should’ or similar
expressions or negatives thereof but are not the exclusive means of
identifying such statements. Statements that are not historical or current
facts, including statements about OSBG’s, its directors’ and/or
management’s beliefs and expectations, are forward-looking statements. By
their nature, forward-looking statements involve risk and uncertainty because
they relate to events and depend upon circumstances that may or may not occur
in the future that could cause actual results or events to differ materially
from those expressed or implied by the forward-looking statements. Factors
that could cause actual business, strategy, plans and/or results (including
but not limited to the payment of dividends) to differ materially from the
plans, objectives, expectations, estimates and intentions expressed in such
forward-looking statements made by OSBG or on its behalf include, but are not
limited to: general economic and business conditions in the UK and
internationally, including any changes in global trade policies; market
related trends and developments; fluctuations in exchange rates, stock
markets, inflation, deflation, interest rates, energy prices and currencies;
policies of the Bank of England, the European Central Bank and other G7
central banks; the ability to access sufficient sources of capital, liquidity
and funding when required; changes to OSBG’s credit ratings; the ability to
derive cost savings; changing demographic developments, and changing customer
behaviour, including consumer spending, saving and borrowing habits; changes
in customer preferences; changes to borrower or counterparty credit quality;
instability in the global financial markets, including Eurozone instability,
the potential for countries to exit the European Union (the EU) or the
Eurozone, and the impact of any sovereign credit rating downgrade or other
sovereign financial issues; technological changes and risks to cyber security;
natural and other disasters, adverse weather and similar contingencies outside
OSBG’s control; inadequate or failed internal or external processes, people
and systems; fraud and other financial crime; acts of war and terrorist acts
or hostility and responses to those acts; geopolitical events and diplomatic
tensions; the impact of outbreaks, epidemics and pandemics or other such
events; changes in laws, regulations, taxation, ESG reporting standards,
accounting standards or practices, including as a result of the UK’s exit
from the EU; regulatory capital or liquidity requirements and similar
contingencies outside OSBG’s control; the policies and actions of
governmental or regulatory authorities in the UK, the EU or elsewhere
including the implementation and interpretation of key legislation and
regulation; the ability to attract and retain senior management and other
employees; the extent of any future impairment charges or write-downs caused
by, but not limited to, depressed asset valuations, market disruptions and
illiquid markets; exposure to regulatory scrutiny, legal proceedings,
regulatory investigations or complaints; changes in competition and pricing
environments; the inability to hedge certain risks economically; the adequacy
of loss reserves; the actions of competitors, including non-bank financial
services and lending companies; the success of OSBG in managing the risks of
the foregoing; and other risks inherent to the industries and markets in which
OSBG operates.

Accordingly, no reliance may be placed on any forward-looking statement.
Neither OSBG, nor any of its directors, officers or employees provides any
representation, warranty or assurance that any of these statements or
forecasts will come to pass or that any forecast results will be achieved. Any
forward-looking statements made in this document speak only as of the date
they are made and it should not be assumed that they have been revised or
updated in the light of new information of future events. Except as required
by the Prudential Regulation Authority, the Financial Conduct Authority, the
London Stock Exchange PLC or applicable law, including, without limitation,
the UK Listing Rules, the Disclosure Guidance and Transparency Rules and UK
Market Abuse Regulations, OSBG expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained in this document to reflect any change in
OSBG’s expectations with regard thereto or any change in events, conditions
or circumstances on which any such statement is based. For additional
information on possible risks to OSBG’s business, (which may cause actual
results to differ materially from those expressed or implied in any
forward-looking statement), please see the “Risk review” section in the
OSBG full year results for 2025. Copies of this are available at www.osb.co.uk
and on request from OSBG.

Nothing in this document or any subsequent discussion of this document
constitutes or forms part of a public offer under any applicable law or an
offer or the solicitation of an offer to purchase or sell any securities or
financial instruments. Nor does it constitute advice or a recommendation with
respect to such securities or financial instruments, or any invitation or
inducement to engage in investment activity under, or financial promotion
within the meaning of, section 21 of the Financial Services and Markets Act
2000. Past performance cannot be relied on as a guide to future performance.
Statements about historical performance must not be construed to indicate that
future performance, share price or results in any future period will
necessarily match or exceed those of any prior period.

Nothing in this document is intended to be, or should be construed as, a
profit forecast or estimate for any period.

In regard to any information provided by third parties, neither OSBG nor any
of its directors, officers or employees explicitly or implicitly guarantees
that such information is exact, up to date, accurate, comprehensive or
complete. In no event shall OSBG be liable for any use by any party of, for
any decision made or action taken by any party in reliance upon, or for
inaccuracies or errors in, or omission from, any third-party information
contained herein. Moreover, in reproducing such information by any means, OSBG
may introduce any changes it deems suitable, may omit partially or completely
any aspect of the information from this document, and accepts no liability
whatsoever for any resulting discrepancy.

Liability arising from anything in this document shall be governed by English
law, and neither OSBG nor any of its affiliates, advisors or representatives
shall have any liability whatsoever (in negligence or otherwise) for any loss
howsoever arising from any use of this document or its contents or otherwise
arising in connection with this document. Nothing in this document shall
exclude any liability under applicable laws that cannot be excluded in
accordance with such laws.

Certain figures contained in this document, including financial information,
may have been subject to rounding adjustments and foreign exchange
conversions. Accordingly, in certain instances, the sum or percentage change
of the numbers contained in this document may not conform exactly to the total
figure given.

Non-IFRS performance measures

OSBG believes that any non-IFRS performance measures included in this document
provide a more consistent basis for comparing the business' performance
between financial periods, and provide more detail concerning the elements of
performance which OSBG is most directly able to influence or which are
relevant for an assessment of OSBG. They also reflect an important aspect of
the way in which operating targets are defined and performance is monitored by
the Board. However, any non-IFRS performance measures in this document are not
a substitute for IFRS measures and readers should consider the IFRS measures
as well. Refer to the “Alternative performance measures” section in the
OSBG full year results for 2025. for further details, reconciliations and
calculations of non-IFRS performance measures included throughout this
document, and the most directly comparable IFRS measures. Copies of the OSBG
full year results for 2025 are available at www.osb.co.uk and on request from
OSBG