Investors have cheered signs of a turnaround at OSB Group after a tumultuous period for the buy-to-let lender that triggered two profit warnings.

Shareholders were left reeling in March and last July when the FTSE 250 bank twice cut its financial forecasts, dealing a double blow to OSB’s stock price.

It said on Wednesday that a “stable” performance in the first quarter of the year meant it was on course to meet the reduced guidance it issued to the stock market two months ago. This reassured investors, who sent shares in OSB up by 5.3 per cent to 452p. Analysts at Panmure Gordon, the stockbroker, welcomed the trading update, saying it was “what is needed to rebuild fractured confidence”.

OSB is one of Britain’s