OneSavings Bank (OSB) has announced that it increased its loan book to £73bn during 2017, a 23% increase on the £59bn reported in 2016.
In its preliminary results for the year ending 31st December 2017, the specialist bank saw its loan book grow as a result of a 14% rise in gross originations to £2.6bn.
OSB also revealed that underlying profit before tax during 2017 reached £167.7m, up 21% on the £138.2m announced in 2016.
Meanwhile, the bank's return on equity remained strong at 28%, despite strengthening its common equity tier 1 capital ratio to 13.7% (2016: 13.3%).
Andy Golding, CEO at OneSavings Bank (pictured above), said he was delighted to report a strong set of results while negotiating significant regulatory and tax changes in its core buy-to-let market.
“Despite market sentiment linked to political and economic uncertainty going forward, we entered 2018 with a strong pipeline of new business in our core markets and intend to deploy our proven credit risk and operational competencies to expand our residential and commercial product offerings in 2018.
“We also expect to deliver net loan book growth in the mid-teens in 2018 and NIM [net market interest] of circa 3%, reflecting current asset pricing and an expectation of a rising cost of funds after the end of TFS [term funding scheme].
“We anticipate a cost-to-income ratio of circa 30% for 2018, reflecting the significant increase in the cost of regulation and planned investment in the business to support our growth strategy.”
Andy concluded: “OneSavings Bank is well placed to take advantage of growth opportunities in 2018 and we remain confident in our ability to generate attractive returns for our shareholders."
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