OSB Group plc has reported a resilient start to 2026, with modest loan book growth and continued progress on its strategic transformation programme.
For the three months to 31st March 2026, the Group’s net loan book rose by 0.9% to £26.15bn, supported by an 11% increase in originations to £1.2bn.
Growth was driven by buy-to-let (BTL) and residential lending, alongside continued expansion in higher-yielding specialist segments.
Retail deposits increased by 1.8% to £24.7bn, while total assets fell slightly as the Group optimised its liquidity position and repaid £350m of Indexed Long-Term Repo (ILTR) drawings.
The Common Equity Tier 1 (CET1) ratio remained strong at 15.1%, despite the impact of a £100m share buyback programme announced in March.
Credit performance remained stable, with arrears of three months or more unchanged at 1.7%, reflecting ongoing strong credit quality of the loan book.
Provisions increased marginally in the quarter reflecting updated macroeconomic scenarios.
Alongside its financial performance, OSB Group continued to make progress on its transformation programme.
The group is preparing to launch residential mortgages on its new lending platform in the third quarter, while also expanding its savings platform, including plans to introduce ISA products and a new savings app later in the year.
Andy Golding (pictured), chief executive officer 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.”
Golding added: “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.”
He added: “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.”