OneSavings Bank PLC (LON:OSB) shares gained as it issued a positive outlook after the loan book grew by 5% in the first quarter with new lending at attractive margins.
Net loans and advances rose by £368mln to £7.7bn in the three months to March 31 from £6.2bn last year after receiving strong levels of applications.
The lender said organic originations rose to £689mln at “attractive margins” from £599mln last year.
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“Our lending and retail savings franchises remain strong, and given current levels of applications in our core buy-to-let and commercial businesses, we are confident that we can deliver at least mid-teens net loan book growth this year. There is no change to other guidance for 2018,” said chief executive Andy Golding.
The group ended the period with a strong capital position and had a total drawing of £1.5bn at the end of the Bank of England’s Term Funding Scheme in February.
Shares increased 1% to 413.20p in morning trading.