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
British Business Investments aims to invest in ‘at least one’ challenger bank over next 12 months
British Business Investments Ltd has said it hopes to make another investment in at least one challenger bank over the next 12 months...
Gatehouse bolsters property team
Gatehouse Bank has expanded its property division with two appointments to its build-to-rent and real estate finance teams...
Leeds Building Society improves service for new-build homebuyers
Leeds Building Society has enhanced its new-build mortgage offering for homebuyers and mortgage brokers...
Arbuthnot Latham partners with Xactium
Arbuthnot Latham has chosen to implement the Xactium risk management system across the organisation...
FCA reports ‘notable’ urban-rural differences in how consumers experience financial services
There are “notable” differences between how consumers in urban and rural areas experience finance services, according to a new report by the FCA...
Digital banking fintech launches new product
Penta has launched a new product called Team Access whereby business owners can order MasterCards for their co-founders and co-workers...
Banking on the cloud: why moving core systems is no longer a distant possibility
Clearer regulation, greater flexibility and lower costs are behind banks’ increased use of the cloud for core activities such as anti-fraud, data hosting and analytics...
Starling Bank launches gambling blocker technology
Starling Bank has introduced a gambling blocker feature to help tackle betting addiction...
Triodos Bank provides £5m for Riverford employee ownership scheme
Triodos Bank has provided £5m of funding to help an organic veg box operation transfer 74% of the company ownership to employees...
Sainsbury’s Bank withdraws all base rate tracker products
Sainsbury’s Bank has removed all of its base rate tracker mortgage products with immediate effect...
Leek United extends mortgage offer period
Leek United Building Society has announced that it has doubled the offer period on its mortgages from three to six months...