OneSavings Bank results: challenger bank reports a rise in its loan book
Challenger OneSavings Bank reported a rise in its loan book for the first three quarters today, saying it continued to expect full-year growth to be a “few percentage points ahead” of the 29 per cent growth delivered last year.
The specialist lending and retail savings bank first listed on the London Stock Exchange last year.
The bank said yesterday that net loans and advances grew £986m for the first nine months of 2015 to £4.9bn, and that with “strong” margins it expected full-year net interest margin to be “slightly ahead” of the 305bps seen in the first half of this year.
OneSavings Bank also described its cost-to-income ratio as “very strong” and maintained previous guidance that the full-year figure would be “slightly” higher than the first half as a result of more infrastructure investment.
Analysts at Investec said that today's trading statement “should be taken very well”, adding that the bank’s stock has surged by 8 per cent in the past week, within 3 per cent of its all-time high. The stock closed down 1.28 per cent yesterday, at 5p per share.