OSB GROUP PLC (the Group), the specialist lending and retail savings group, today issues its trading update for the period from 1 January 2026 to date.
The Group delivered a resilient financial performance combined with strategic progress in the first quarter of 2026. The Group continues to operate broadly in line with 2026 guidance.
Financial highlights:
- Resilient delivery in the second transition year Net loan book increased by 0.9% or £233m in the first three months of 2026 supported by an 11% increase in originations to £1.2bn (Q1 2025: £1.1bn) with good growth in Buy-to-Let and Residential as well as continued growth in the higher-yielding sub-segments.
- Retail deposits increased by 1.8% or £447m and the Group repaid £350m of ILTR drawings with an outstanding balance of £1.15bn at the end of March (31 December 2025: £1.5bn) in line with the Group’s liquidity requirements.
- This contributed to lower total assets as the Group optimised its liquidity portfolio in the period.
- Three months plus arrears balances remained at 1.7% with ongoing strong credit quality of the loan book in the first quarter. The Group’s IFRS 9 ECL modelled provisions increased marginally in the quarter reflecting the updated macroeconomic scenarios.
- The CET1 ratio remained robust at 15.1%, reflecting resilient financial performance in the first quarter after the £100m share repurchase programme announced in March.
- RWAs grew by 0.6% compared to a 0.9% growth in the net loan book, reflecting an increase in Buy-to-Let net loans in the quarter.
- The Group repurchased £30.2m worth of shares under the £100m share repurchase programme announced in March which is due to complete no later than 6 March 2027.
Andy Golding, CEO of OSB GROUP PLC, said:
“The Group delivered a resilient financial performance in the first quarter of 2026 and we continue to operate broadly in line with our 2026 guidance.
The Group’s lending franchise performed as expected in the first quarter. Buy-to-Let originations under our Rely brand were strong, supported by an increase in market activity at the start of the year. We continued to tailor our specialist Residential mortgage products to the needs of our borrowers by introducing several key policy criteria and saw increased originations in the first quarter. At the end of April, our net loan book growth was in line with our expectations.
Supported by our new technology platforms, we were able to more effectively manage the impact of the rapid movements in swap rates in the first quarter. We were agile in repricing products, protecting margins and returns while ensuring we remained present in the market for our customers. Our timely actions resulted in the blended cost of new retail funding being in line with our expectations in the quarter. As set out at our 2025 full year results, our 2026 NIM guidance is partially dependent on the cost of retail funding normalising throughout the rest of the year.
We also made good progress on transformation as the programme entered its penultimate year. Final stages of testing are underway ahead of the launch of Residential mortgages on the new lending platform in the third quarter. We have continued migrating Kent Reliance easy access savings accounts and fixed rate bonds onto the new platform, extending its benefits to more of our savers. We will add ISA products onto the new platform for new Kent Reliance savers and will launch a new savings app later in the year.
Looking ahead, we are mindful of the ongoing uncertain geopolitical situation and its impact on the UK economy, the wider mortgage market and borrowers’ affordability. In response, we are carefully managing the composition and growth of our loan book, with a continued focus on protecting returns whilst ensuring that our modelled IFRS 9 ECL provisions reflect the macroeconomic scenarios as they evolve.
We are making progress through the second year of the transition period to deliver on our medium-term aspirations, with positive outcomes for our stakeholders and strong returns for our shareholders.”
Jon Hall, Group Chief Commercial Officer, OSB Group commenting on Q1 Trading Update
“OSB Group has delivered a resilient performance in the first quarter and remains broadly in line with our 2026 guidance.
“Following the successful launch of our new dedicated buy to let brand Rely late last year and the incoming Renters’ Rights Act, we’re well positioned to meet the needs of professional landlords who continue to quickly adapt to the changes and manage their portfolio businesses effectively. There is a clear pathway to the acceleration of the professionalisation of the private rented sector and for larger landlords to expand their portfolios as amateurs sell.
"We’ve maintained a strong offer in all of our lending segments even through the current volatility arising from the Middle East conflict, most notably in Rely, where, enabled by the new platform, our full range of landlord products remained accessible.
“We’ve also made significant headway with Precise through our specialist residential mortgage products, where a number of key criteria changes designed to support first time buyers, re-mortgagers and home movers generated a marked uplift. We’re making good progress with our plans to move residential products onto a new lending platform later in the year which will bring considerable flexibility and simplicity for brokers.’’
