REG-OSB GROUP PLC - Trading Update for the nine months to 30 September 2025

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OSB GROUP PLC
Trading update for the nine months to 30 September 2025

OSB GROUP PLC (the Group), the specialist lending and retail savings group,
today issues its trading update for the period from 1 January to 30 September
2025.

The Group’s performance in the nine months to 30 September was in line with
expectations and on track to meet 2025 guidance.

Performance for the nine months to 30 September 2025

 £m                   30-Sept-2025  31-Dec-2024  Change   
 Net loan book        25,587 (1)    25,126       1.8%     
 Total assets         30,955        30,244       2.4%     
 Retail deposits      25,259        23,820       6.0%     
                                                          
 CET1 ratio % (2)     15.8          16.3         (50)bps  
 3 months+ arrears %  1.7           1.7          - bps    
                                                          

1. Net loan book as at 30 September 2025 is after deduction of £130m of
second charge loans which were sold in September 2025. Excluding the sale, the
net loan book would have increased by 2.3% from 31 December 2024
2. Unaudited and includes Q3 2025 unverified profits net of foreseeable
dividend and other charges

Financial highlights: Resilient delivery against plan and on track for 2025
guidance

The Group’s net loan book grew in line with expectations in the first nine
months of 2025 supported by a 19% increase in originations to £3.4bn compared
to £2.8bn in the first nine months of 2024. In September, the Group sold its
portfolio of second charge mortgages (£130m). Excluding the sale, the net
loan book would have increased by 2.3% from 31 December 2024.

The Group is delivering on its plan to evolve its loan book mix. Originations
in higher-yielding sub-segments in the first nine months of 2025 outpaced
origination volumes in Buy-to-Let. Origination and retention margins remained
in line with expectations.

Total assets reflected net loan book growth in the period and a 4.9% increase
in liquid assets.

Retail deposits increased as the Group repaid its TFSME borrowings in full on
10 September 2025 and undertook some pre-funding for the fourth quarter of the
year. As expected, cost of funds in the market remained elevated in the third
quarter in the run up to a large market wide TFSME repayment event.

Three months plus arrears balances reverted to 1.7% from 1.8% as at 30 June
2025, in line with the previous trend. Credit quality of the loan book
remained strong in the period.

The Common Equity Tier 1 capital ratio remained robust at 15.8%, reflecting
resilient financial performance in the nine months and the £100m share
repurchase programme announced in March. After the second charge portfolio
sale, RWAs increased by 4.0% in the first nine months of 2025, as the Group
carefully optimised the loan book toward higher-yielding assets.

The Group had repurchased £67.7m worth of shares under the £100m share
repurchase programme(1) which is due to complete no later than 10 March 2026.

1. As at market close on 4 November 2025

Andy Golding, CEO of OSB GROUP PLC, said:

“I am pleased with the Group’s resilient financial performance and
strategic progress in the nine months to 30 September. We have delivered in
line with our plan and we are on track for the full year 2025 net interest
margin, administrative expenses, loan book growth and return on tangible
equity guidance.

Our lending franchise performed well as we continued to exercise discipline
and optimise returns. In our Buy-to-Let segment we remained focused on
professional landlords refinancing or adding to their portfolios. The new
Residential products which were launched in the second quarter have been
gaining traction and we have seen good origination volumes in our
higher-yielding sub-segments. In September, we sold our second charge mortgage
portfolio, as we continue to focus on our strategic aims of optimising our
balance sheet and improving our blended risk adjusted returns.

In September, the Group completed a £578m securitisation of owner-occupied
prime mortgages under the CMF programme and I am pleased that we have achieved
our best-ever pricing for this transaction. We will continue to complement
retail savings funding with attractive price and duration options as we
actively manage our overall cost of funds in a competitive market.

The transformation programme progressed in line with our plan in the third
quarter. In October we began successfully migrating the first tranche of
existing Easy Access accounts onto the new savings platform and this will
continue in the coming weeks. We are also processing more Buy-to-Let
applications on the new lending platform under the Rely brand before a market
launch later this month.

Looking ahead, we are cognisant that the Buy-to-Let mortgage market remains
subdued however the fundamentals of the UK Private Rented Sector are strong.
We are focused on making progress through the transition period to deliver on
our medium-term aspirations, with positive outcomes for our stakeholders and
strong returns for our shareholders.”

Enquiries:

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

t: 01634 838 973                                         
                             t: 020 7404 5959

                        

Financial calendar for 2026*

 5 March 2026     2025 year end results   
 30 April 2026    Q1 trading update       
 7 May 2026       AGM                     
 6 August 2026    2026 half year results  
 5 November 2026  Q3 trading update       

* All dates are subject to change

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, bespoke and specialist residential lending
and asset finance.
OSB originates mortgages organically via specialist brokers and independent
financial advisers through its specialist brands including Kent Reliance for
Intermediaries and InterBay Commercial. It is differentiated through its use
of highly skilled, experience-based manual 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
Term Funding Scheme with additional incentives for SMEs.

Charter Court Financial Services Group (CCFS)
CCFS focuses on providing Buy-to-Let and specialist residential mortgages and
retail savings products. It operates through its brands: Precise and Charter
Savings Bank.
It is differentiated through risk management expertise and best-of-breed
automated technology and systems, ensuring efficient processing, strong credit
and collateral risk control and speed of product development and innovation.
These factors have enabled strong balance sheet growth whilst maintaining high
credit quality mortgage assets. 
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 Term Funding Scheme with
additional incentives for SMEs.

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; 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; market relating trends and developments;
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, 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”.

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 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 Appendix (Key performance indicators) for further
details, reconciliations and calculations of non-IFRS performance measures
included throughout this document, and the most directly comparable IFRS
measures