OSB Group PLC (LSE:OSB) tumbled again after numbers that one broker said failed to restore confidence damaged by last year’s problems at the buy-to-let mortgage specialist.
Instead, there were further downgrades to guidance, said Panmure Liberum, with net interest margins this year now expected to be between 2.3-2.4%, against 2.5% previously.
Loan book growth was also slower than expected with +1.5% growth during the period to £26.1bn, resulting in the full-year guidance reducing to +3% (from +5%).
As a result, the cost-income ratio is also expected to be weaker at 36% from 33% previously.
Net interest income at the half-year was lower than we had expected but underlying profits were higher at 250 million (£116 million).
The interim dividend rises to 10.7p (10.2p) with a new £50 million buyback to start in September.
PL stuck with a ‘buy’ recommendation and 650p, target though the shares were trading at 395p, down 89p, at lunchtime.