OSB Group Raises Loan Book Growth Guidance for 2023 and Announces CFO Retirement

OSB Group, a specialist lending and retail savings group, has increased its loan book growth guidance for 2023 following a strong lending performance in the third quarter. The company now expects to achieve underlying net loan book growth of approximately 9% for the year, compared to the previous guidance of around 7%. This growth is largely attributed to its successful lending, particularly in retentions.

In the three months leading up to September 30, OSB Group completed £1.3 billion ($1.6 billion) of new lending, while retail deposits saw a 5% increase. Over the course of the first nine months of the year, underlying and statutory net loans rose to £25.2 billion ($30.6 billion), reflecting a 7% increase compared to December 31.

Despite rising costs of retail funds and the impact of planned future minimum requirements for funds and eligible liabilities, or MREL, issuance, OSB Group remains confident in achieving its targets. The company aims to deliver an underlying net interest margin of around 2.6% and an underlying cost to income ratio of around 33% by 2023.

While uncertainties surround the U.K. economy and the overall mortgage market, Chief Executive Andy Golding remains optimistic about the private rented sector's demand drivers.

In other news, OSB Group's Chief Financial Officer (CFO), April Talintyre, has announced her retirement from the role and as a director after 11 years with the company. The process of appointing her successor is currently underway.

At 0840 GMT, OSB Group's shares traded at 310.4 pence, representing a 7.6% increase of 22 pence.