Shares in challenger OneSavings Bank PLC (LON:OSB) dipped a tad despite it saying it was on track to meet full year growth targets and recorded a record month in March due to mortgage completions ahead of stamp duty changes.
The group is a specialised lender in such markets as private rented sector buy-to-let, commercial property and residential development finance.
Since the new year, loans and advances grew by £460mln during the first quarter, accelerated by acquisitions of first and second charge residential mortgage portfolios totalling £131mln, the firm said.
The group added that its cost to income ratio remained excellent.
"We anticipate the full year ratio to be in line with or slightly higher than the 26% achieved in 2015, as previously guided," it said, adding that growth was supported by a robust group capital position.
The group has so far drawn on £576mln under the government's Funding for Lending Scheme (FLS) and is targeting a minimum drawdown of around £700mln in 2016.
Andy Golding, chief executive, said: "I am extremely pleased with the performance of the business so far this year. We achieved strong levels of new business in the first quarter with £627m of organic origination at attractive margins, supported by acquisitions of £131m."
Shares eased 0.81% to 281.60p.