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
Coutts partners with Mortgage Brain to offer products to intermediaries
Private bank Coutts has partnered with Mortgage Brain to make its products available – via the latter’s platforms – to UK intermediaries...
Charter Savings Bank launches two new accounts
Charter Savings Bank has introduced two new accounts: a 95-day notice account and a three-year fixed rate cash Isa...
FP Show reveals its largest and most diverse conference programme
The Finance Professional Show has confirmed its largest conference programme to date, hosting a selection of varied sessions throughout the event next month...
47% of SMEs prepared to move away from traditional banks
Almost half of SMEs in the UK (47%) would move to a challenger/digital bank or non-banking brand if they decided to switch, according to the latest research by Unisys Corporation...
Monese launches business account
Monese has launched a business account in the UK which will be bundled with its personal banking account...
Metro Bank provides £14m facility to support London office acquisition
Metro Bank has provided Kingsway Properties London with a £14m investment facility to support the acquisition of a five-storey office building in central London...
Tandem introduces new credit card blocking feature
Tandem has created a new card-blocking feature for its banking app which allows customers to react instantly to a misplaced card...
Trinity College Dublin secures €100m EIB facility
The European Investment Bank (EIB) has provided a €100m long-term loan to Trinity College Dublin for four capital developments across the campus...
Arbuthnot Banking Group completes testing phase of direct deposits business
Arbuthnot Banking Group has announced that the internal pilot offering of its direct deposits business will commence soon...
Anna to launch business current account for creative UK SMEs
Hybrid digital assistant Anna has announced plans to launch a UK business current account aimed exclusively at supporting SMEs in the creative industries...
Masthaven reaches £500m in assets
Masthaven has announced that it has generated £500m in assets driven by the growth in its diversified lending across short-term and long-term property finance...