OSB Group 1H Pretax Profit, Net Interest Income Rose; Outlook Upgraded


By Sabela Ojea

OSB Group PLC reported on Thursday a significant rise in pretax profit and net interest income for the first half of 2022 and said that it has improved its full-year underlying net interest margin guidance.

The specialist lending and retail savings group posted a pretax profit of 268.1 million pounds ($327.6 million) compared with GBP221.9 million for the same period a year earlier.

Net interest income increased to GBP343.4 million from GBP265.3 million, it said.

OSB’s common equity Tier 1 ratio–a key measure of balance-sheet strength–stood at 18.9%, from 19.0% as at Dec. 31, it said.

The board declared an interim dividend of 8.7 pence a share, up from 4.9 pence a year earlier.

Regarding its outlook for 2022, the bank said that it now expects its underlying net interest margin to be broadly flat to the first half.

“We remain confident in delivering underlying net loan book growth of around 10% for 2022 based on current pipeline and applications,” it said, adding that it continues to expect the underlying cost to income ratio for 2022 to increase marginally from 2021.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix


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