Lending and retail savings group OSB Group PLC (LSE:OSB)’s share price climbed more than 14% to 329.6p today after it reported growth in its year-to-date loan book.
In a trading update today, OSB said its underlying and statutory net loans increased by 7% in the nine months through to the end of September to £25.2 billion, up from £23.5 billion and £23.6 billion respectively at the end of last year.
“Given our strong lending performance to date, particularly in retentions, we now expect to deliver full year underlying net loan book growth of c.9%,” OSB Group’s Chief Executive Officer Andy Golding said in a statement.
Organic originations were £1.3 billion in the third quarter to 30 September, down from £1.6 billion in the same period of 2022.
OSB said it had not made a material change to its forward-looking macroeconomic scenarios during the quarter.
It recently completed a £150 million share repurchase programme and an inaugural £300 million senior debt issuance, whihc it said was an important milestone towards meeting its interim minimum requirement for own funds and eligible liabilities (MREL) of 22.5% by July 2024.
“The Group is cognisant of the rising cost of retail funds and the impact of planned future MREL issuance, but remains on track to deliver its 2023 full year guidance of underlying net interest margin of c.2.6% and underlying cost to income ratio of c.33%,” Golding said.