OSB Group H2 Earnings Call Highlights

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

• Net interest margin (NIM) guidance for 2026 is circa 225 basis points, assuming funding costs normalize from elevated levels

  80% confidence

• The provision balance was eight times higher than the average yearly write-offs over the last five years

  80% confidence

• More than 40% of mortgage applications were being processed on the new platform as of the presentation date

  80% confidence

• If OSB moved IFRS 9 weighting to 100% downside, ECLs would rise by £25 million

  80% confidence

• Net loan book growth in 2026 expected to be broadly similar to 2025

  80% confidence

• Before the effect of the £100 million buyback announced in March 2025, CET1 would have been 16.6%, with the buyback having a 0.8 percentage point impact

  80% confidence

• Seeking clarity from regulators on size of the prize versus the effort equation before deciding on Foundation IRB approach, with assumptions based on remaining standardized under Basel III.1

  80% confidence

• Net loans grew 3.2% in 2025, reflecting discipline in maintaining attractive returns on tangible equity in new lending

  80% confidence

• ROTE expectations: low teens in 2026, mid-teens in 2027 and 2028, and the top end of mid-teens in 2029

  80% confidence

• Guidance is not predicated on any mortgage Foundation IRB approval

  80% confidence

• 2026 NIM plan is based on an average blended front book and retention funding assumption of SONIA plus 30 basis points

  80% confidence

• Originations from higher-yielding segments rose 53% in 2025

  80% confidence

• NIM excluding liquid assets was 267 basis points in 2025, intended to better reflect underlying business performance and improve comparability with peers

  80% confidence

• 2025 results were in line with 2025 guidance

  80% confidence

• ILTR characterized as a smoothing tool to manage peaks and troughs in funding costs

  80% confidence

• Residential mortgages on the new platform are well underway and expected to launch later in the year under the Precise brand

  80% confidence

• Higher-yielding segments represented 12% of the total loan book at year-end, up from 9% in 2024

  80% confidence

• Three-month-plus arrears were unchanged at 1.7% at the end of 2025

  80% confidence

• Technology transformation is entering the fourth year of a five-year plan and remains on track and within budget

  80% confidence

• Group expenses guided to circa £280 million in 2026, with core costs rising no more than inflation

  80% confidence

• Current market funding levels were roughly 10-15 basis points above SONIA plus 30

  80% confidence

Data points we hold from this source