REG-OSB GROUP PLC Preliminary Results

OsbAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260305:nGNE6mY7Ym&default-theme=true


 5 March 2026            LEI: 213800ZBKL9BHSL2K459  
                                                    
 2025 Full year results                             
 OSB Group PLC's Full year results for the year ended 31 December 2025 are available in full unedited text at: 2025 Full Year Results (https://ml-eu.globenewswire.com/media/e57e9a39-ab60-41c7-a316-0f472da5a686/document/?v=03042026055200)and on the Group’s corporate website https://www.osb.co.uk/investors/results-reports-presentations .  A copy of the full year results has also been submitted to the National Storage Mechanism and will shortly be available for inspection at: 
 https://data.fca.org.uk/#/nsm/nationalstoragemechanism . This announcement is made in accordance with DTR 6.3.5R(1A). 
                                                    

OSB GROUP PLC (OSBG or the Group), the specialist lending and retail savings
group, announces today its results for the year ended 31 December 2025.

Andy Golding, Group CEO, said:
“The Group delivered resilient financial performance in the first year of
the transition period, which was in line with our 2025 guidance. We also made
tangible progress against our strategy that we set out at the Investor update
last year. The loan book diversification has been gaining momentum and in
2025, combined originations in our higher-yielding sub-segments grew by 53%.
The Buy-to-Let gross loan book represented 68% of the Group’s total gross
loan book, a reduction from 70% a year ago, on track with our 2029 target.
Finally, many milestones were achieved in the transformation programme in the
year. I am particularly pleased with the launch of our new lending platform, a
new brand dedicated to Buy-to-Let borrowers: Rely as well as a successful
migration of some of our existing savers onto the new savings platform. All
this was achieved on time and to budget.

I am pleased that the Group’s MREL resolution strategy was reclassified to
Transfer from Bail-in, which will bring benefits in the later stages of our
Plan. With greater clarity over the Basel 3.1 rules and our confirmed MREL
status and therefore our capital requirements, the Board set a new CET1 target
for the Group of 13-13.5% post implementation of the Basel 3.1 rules.

The Board has recommended a final dividend per share of 24.1 pence (2024: 22.9
pence), which together with the interim dividend of 11.2 pence (2024: 10.7
pence), represents a total ordinary dividend per share of 35.3 pence for 2025,
an increase of 5% from the prior year as guided. The Board is committed to
returning excess capital to shareholders and has today announced a new £100m
share repurchase programme to commence on 6 March 2026.

The previously communicated direction for 2026 has been refined as guidance as
follows:
* net loan book growth is now expected to be broadly similar to 2025
outcome,  
* net interest margin is expected to be circa 225bps, reflecting the same key
drivers as in 2025: a continuation of lending back book dynamics; new business
written at sustainable margins; and a gradual normalisation of the cost of
retail funding from the current elevated levels,
* administrative expenses are expected to be c.£280m(1) with core costs
increasing at no more than the rate of inflation and as we continue to invest
in the transformation programme,
* finally, we anticipate a low teens return on tangible equity and a dividend
per share increasing by 5% in 2026.
Return on tangible equity remains our key focus. We continue to expect mid
teens RoTE in 2027-28, increasing to the top end of mid teens in 2029 driven
by the successful execution of our strategy, capital optimisation and the MREL
qualifying debt securities reaching their respective call dates.

The Group is well-capitalised, with strong liquidity and a high-quality
secured loan book. We are focused on making progress through the transition
period to deliver on our medium-term aspirations, prioritising positive
outcomes for our stakeholders and strong returns for our shareholders.”

Financial and operational highlights
* Net loan book grew by 3.2% to £25.9bn as guided (31 December 2024:
£25.1bn) supported by a 19% growth in originations to £4.7bn (2024: £4.0bn)
with continued focus on returns and diversification into higher-yielding
sub-segments
* Net interest income and net interest margin (NIM)(2 )were £679.4m and
228bps, in line with guidance (2024: underlying(3) £690.6m and 230bps,
respectively). The reduction primarily related to more costly spreads to SONIA
from new retail funding which more than offset more resilient back book
performance and new business written at sustainable margin
* Administrative expenses and cost to income ratio increased to £270.1m and
40.4% (2024: £258.1m and 38.7%, respectively) mainly due to further
investment in the Group’s transformation programme. Core administrative
expenses(4) increased by 0.8% compared with the prior year
* Loan loss ratio(5) was 5bps (2024: (4)bps) and arrears balances of three
months or more were stable at 1.7% (31 December 2024: 1.7%)
* Profit before tax reduced to £382.5m (2024: £418.1m) primarily due to an
impairment charge compared to an impairment credit in the prior year, an
increase in fair value losses and higher administrative expenses
* Retail deposits increased by 2% to £24.3bn (31 December 2024: £23.8bn).
The Group repaid its TFSME borrowings in full on 10 September 2025
* Return on tangible equity(6) reduced to 13.7% (2024: 14.9%) due to lower
profitability in the year
* TNAV per share(7) improved to 579 pence as at 31 December 2025
(31 December 2024: 544 pence) largely as a result of lower number of shares
outstanding
* Basic earnings per share(8) (EPS) was 75.6 pence (2024: 77.6 pence)
* The Common Equity Tier 1 capital ratio remained strong at 15.8%
(31 December 2024: 16.3%)
* Total dividend of 35.3 pence per share (2024: 33.6 pence) an increase of 5%
as guided
Dividend details
The recommended final 2025 dividend of 24.1 pence per share, subject to
approval at the AGM on 7 May 2026, will be paid on 13 May 2026.

The ordinary shares will be quoted ex-dividend on the London Stock Exchange on
2 April 2026 with the record date of eligibility for dividend payment of
7 April 2026.

 Enquiries:                                                          
 OSB GROUP PLC                           Brunswick Group             
 Alexander Holcroft, Investor Relations  Robin Wrench/Simone Selzer  
 t: 01634 838 973                        t: 020 7404 5959            
                                                                     

Results presentation 
A webcast presentation for analysts will be held at 9:30am on Thursday 5
March. The presentation will be webcast and available on the OSB Group website
at www.osb.co.uk/investors/results-reports-presentations.

The UK dial in number is 020 3936 2999 and the password is 643879.
Registration is open immediately.

Summary financials

                                                    2025         2024         change    
 Net interest income, £m                            679.4        666.4        2%        
 Underlying net interest income (3), £m             –            690.6        n/m       
                                                                                        
 Net fair value loss on financial instruments, £m   (22.1)       (1.5)        n/m       
 Total income, £m                                   668.0        667.2        –%        
 Administrative expenses, £m                        (270.1)      (258.1)      5%        
 Impairment of financial assets, £m                 (13.0)       11.7         n/m       
 Profit before tax, £m                              382.5        418.1        (9)%      
                                                                                        
 Earnings per share (8), pence                      75.6         77.6         (3)%      
 Dividend per share, pence                          35.3         33.6         5%        
                                                                                        
 Net interest margin (2), bps                       228          221          7         
 Underlying net interest margin (3), bps            –            230          n/m       
 Cost to income ratio, %                            40.4         38.7         1.7ppt    
 Loan loss ratio (5), bps                           5            (4)          9         
 Return on tangible equity (6), %                   13.7         14.9         (1.2)ppt  
 TNAV/share (7), pence                              579          544          6%        
                                                                                        
                                                    31-Dec-2025  31-Dec-2024            
 Net loans and advances to customers, £m            25,920.6     25,126.3     3.2%      
 Total assets, £m                                   31,122.7     30,243.6     3%        
 Retail deposits, £m                                24,251.1     23,820.3     2%        

Notes
1. Additional costs related to the new CEO transition and buyout are not
included.
2. Net interest income as a percentage of a 13 point average of interest
earning assets.
3. 2025 statutory NIM is comparable with 2024 underlying NIM as both metrics
exclude acquisition-related items, which were fully written off in 2024.
4. See the Appendix for definition and calculation of APMs.
5. Impairment losses as a percentage of a 13 point average of gross loans and
advances.
6. Profit attributable to ordinary shareholders, which is profit after tax,
and after deducting coupons on AT1 securities, gross of tax, as a percentage
of a 13 point average of shareholders’ equity excluding average intangible
assets and of AT1 securities.
7. Tangible net asset value per share is shareholders’ equity excluding
intangible assets and AT1 securities as at the end of the year divided by the
number of shares outstanding at the end of the year.
8. Profit attributable to ordinary shareholders, which is profit after tax,
and after deducting coupons on AT1 securities, gross of tax, divided by the
weighted average number of ordinary shares in issue.
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
2025 Full year results.

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 Appendix section in the OSBG 2025 Full year results for
further details, reconciliations and calculations of non-IFRS performance
measures included in this document and the most directly comparable IFRS
measures