OSB Group PLC (LSE:OSB) said it will return up to £100mln to investors by rebuying its shares as the retail lender posted record annual profit. The shares jumped on the news.
Underlying pretax profit for 2021 rose by 51% to £522.2mln from the year-earlier period, due to lower cost of retail funds and an impairment credit for the year, the company said.
It will pay a final dividend of 21.1p a share, which together with the interim dividend represents an increase in the payout ratio to 30% of underlying earnings.
The retail savings company, however, noted that “inflationary headwinds” may see its underlying cost to income ratio increase marginally, with macroeconomic uncertainty due to geopolitical events.
The company expects net loan book growth of about 10% for the year, with a flat net interest margin.
The shares were up more than 10% in early trading.