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."
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Santander to close 140 branches
Santander has announced that it plans to close 140 branches in the UK as it reshapes its branch network...
British Business Bank UK Network aims to improve funding awareness across UK
The British Business Bank UK Network will help to improve awareness of funding options across the UK by directly approaching business finance professionals...
Building with confidence in challenging times
It is difficult to think of a time in the past three decades when the chasm between the interests of UK business and the Palace of Westminster has been more exposed than the Brexit debacle...
Real Property Finance passes £100m in deals with Cambridge & Counties Bank
Cambridge & Counties Bank has provided more than £100m of loans for the clients of Real Property Finance (RPF)...
Metro Bank reports 48% increase in lending
Metro Bank has reported that its lending increased by 48% in 2018 compared with 2017...
Metro Bank appoints Luke Lloyd-Davies to advisory board
Metro Bank has appointed Luke Lloyd-Davies to its advisory board...
OakNorth: how some of the entrepreneurs we’ve lent to first got started
For many, the new year brings with it new possibilities and the chance to explore new opportunities...
Hanley Economic BS to push self-build offering
Hanley Economic Building Society is set to commence an extensive 2019 self-build campaign as it aims to engage with growing numbers of self-builders...
NatWest offers Esme Loans directly to its SME customers
NatWest will now offer Esme Loans products directly to its existing SME customers...
OSB appoints new NED
OneSavings Bank has announced that it has appointed Sarah Hedger as a non-executive director, with effect from 1st February...
Tandem Bank reaches 500,000 customers
Tandem has announced that it has reached 500,000 customers one year on from being granted a full banking licence...