OneSavings Bank PLC (LON:OSB) faces an increase in costs this year due to regulatory burdens from data protection (GDPR) and payments (PSD 2) directives.
Andy Golding, chief executive, said: “We anticipate a cost to income ratio of c. 30% for 2018, reflecting the significant increase in the cost of regulation and planned investment in the business to support our growth strategy.”
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The mortgage bank reported strong numbers for 2017 as it took a larger share of a shrinking buy-to-let market.
One Savings said its segment of professional landlords had remained strong despite the reduction in amateur landlords due to tax changes.
The loan book rose 23% to £7.3bn, with buy-to-let loans 39% higher at £5bn.
Profits for 2017 rose 3% to £167.7mln, with the net income ratio (NIM) unchanged at 3.16%.
Net loan book growth in 2018 would be in the mid-teens while NIM would be around 3%, Golding added.