OneSavings Bank plc (OSB) has issued its trading update for the period from 1 July 2019 to date.
As the recommended all share combination between OSB and Charter Court Financial Services Group plc (CCFS) completed on 4 October 2019, the update covers OSB group and CCFS group separately.
OneSavings Bank plc reported loan book growth of 15% for the nine months to 30 September 2019, with net loans and advances up by £1,307m to £10.3bn during the period (30 September 2018: £1,175m and £8.5bn, respectively).
New originations totalled £842m in the three months to 30 September 2019 (Q3 2018: £730m) and £2.5bn for the nine months to 30 September (nine months to 30 September 2018: £2.2bn)
The board expects to deliver net loan book growth of high-teens for 2019 and net interest margin (NIM) to be broadly flat for the full year compared to the first half, in-line with management expectations
Meanwhile, Charter Court Financial Services Group plc has reported loan book growth of 4% for the nine months to 30 September 2019 (21% excluding the impact of structured asset sales) with net loans and advances up by £236m to £6.9bn (30 September 2018: £787m and £6.2bn respectively).
New originations totalled £865m in the three months to 30 September 2019 (Q3 2018: £708m) and £2.4bn for the nine months to 30 September (nine months to 30 September 2018: £2.1bn)
Residual interests in three securitisations sold for a pre-tax gain of £58.6m in the nine months to 30 September 2019, resulting in the derecognition of £1,293m of underlying mortgage assets and associated risk weighted assets (30 September 2018: £36.4m and £562.5m respectively)
Charter Court expects to deliver high-twenties net loan book growth for 2019, excluding the impact of the above structured asset sales, and full year NIM to be slightly lower than the first half, in-line with management expectations
Andy Golding, CEO of OneSavings Bank, said: “I am delighted that we successfully completed our combination with Charter Court Financial Services Group on 4 October and we are now in the early stages of integrating the two businesses. We remain focused on delivering shareholder value as we execute on the strategy for the enlarged Group.
“Continued strong performance from both groups in the first nine months of the year delivered 15% net loan book growth for OSB and 21% for CCFS, excluding the impact of structured asset sales. Both banks’ lending franchises are performing very well with strong levels of applications at attractive margins across our core product types building a robust pipeline for Q1 2020.
“In addition to strong retail savings franchises, we have excellent capabilities in the securitisation market which allow us to diversify our funding. I am pleased that in July 2019, OSB securitised £500m of organically originated mortgages under our newly established Canterbury Finance RMBS programme, which was well received in the market. During the quarter, Charter Mortgages Limited successfully sold a residual interest in the Precise Mortgage Funding 2019-1B plc, which generated a pre-tax gain of £28.8m.
“We remain cognisant of the continued uncertain macroeconomic and political outlook, however we believe that as a combined business we are well placed to continue to deliver on our strategy and generate attractive shareholder returns through the cycle.”