OSB Group posted new originations that tumbled 16.6% to £1bn in the first three months of 2024 compared to a year ago, amid “dynamic” market conditions.
It adds that three month-plus arrears balances lifted 10 basis points to 1.5% at the end of March from three months ago, “largely due to the impact of higher cost of living and borrowing,” in a first-quarter trading update.
OSB owns a range of brands including, OneSavings Bank, Kent Reliance and Charter Court Financial Services.
However, the business says underlying and statutory net loans and advances both rose 1% in the first quarter each hitting £26bn, from three months ago.
OSB Group chief executive Andy Golding says: “While market conditions remain dynamic, given the group’s performance to date, we are on track to deliver the 2024 full-year guidance for underlying net interest margin broadly flat to 2023, underlying net loan book growth of around 5% and the underlying cost to income ratio broadly flat to 2023.”
He adds: “Demand in our core buy-to-let and residential sub-segments remains positive with high-quality applications and completions supporting the growing net loan book and we are writing new business at attractive yields.”
“Retail funds pricing remained stable through the quarter as we grew the savings book in line with our requirements.”
The group’s shares lifted 3.1% to 442.4p in early afternoon trading.
