Loan book, gross new lending, and net fair value also grew in the year
Specialist lender OSB Group has announced a 13% increase in underlying pre-tax profit, hitting a record £591.1 million in 2022 from £522.2 million in the previous year.
This increase was primarily due to growth in its loan book, an improved net interest margin, and net fair value gains on financial instruments.
The group, which includes mortgage lending brands Precise Mortgages, Kent Reliance for Intermediaries, and InterBay, saw its underlying net loan book grow by 12% to £23.5 billion, with underlying net interest margin increasing by 21 basis points (bps) to 303 bps.
Gross new lending was up 29% to £5.8 billion in 2022 from £4.5 billion in 2021.
Earnings per share grew by 15% in 2022, benefitting from after tax net fair value gains on financial instruments of £36.8 million, primarily due to the step up in interest rate outlook following the September mini budget.
“I am delighted with the outstanding results that OSB Group delivered in 2022,” Andy Golding (pictured), chief executive at the OSB Group, stated in a release announcing the results. “We delivered record profits while proving once again the resilience of our strategy and business model.”
Golding added that OSB remains cognisant of the uncertain macroeconomic outlook and the potential impact of the higher cost-of-living and borrowing on the mortgage market and affordability.
“We are building a healthy pipeline of new business and have a proven track record of retaining customers, attracting new business, and working with high quality borrowers,” he said. “The group remains well capitalised, with strong liquidity, and a high quality loan book and customer franchises. It has a proven track record of delivering strong results with a clear strategy and risk management framework. We have consistently demonstrated our resilience, which allows us to look to the future with optimism.”
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