OneSavings Bank raises guidance as profits rise

0
11

OneSavings Bank raises guidance as profits rise

OneSavings now expects to deliver net loan book growth in the ‘high-teens’ in 2018.


Profits rose at buy-to-let specialist OneSavings Bank (Andrew Matthews/PA)
Profits rose at buy-to-let specialist OneSavings Bank (Andrew Matthews/PA)

OneSavings Bank has reported rising interim profits and upped full year guidance, brushing aside the Government’s crackdown on its core buy-to-let market.

The challenger bank saw pre-tax profits rise 17% to £91.8 million in the six months to June 30, while its loan book swelled 11% to £8.1 billion.

Gross new organic lending rose 17% to £1.4 billion.

OneSavings now expects to deliver net loan book growth in the “high-teens” in 2018, up from an earlier projection of the mid-teens.

It comes despite the Government reducing tax relief for buy-to-let landlords, and banks having to tighten lending criteria.

The lender said that while this had dampened industry-wide demand for new purchase mortgages, this was partially offset by an increase in demand for remortgages.

Boss Andy Golding added: “We focus on the professional buy-to-let market where trends remain positive.

“Demand for five-year fixed-rate products has risen noticeably across the market with competition continuing to increase, however we continue to see good opportunities for growth and our InterBay commercial business continues to flourish.”

OneSavings’ net interest margin – the difference between the interest received from borrowers and the amount paid out on deposits– fell from 3.24% to 3.01%

The lender put this down to lower yields on its mortgages amid strong competition.

document.addEventListener(‘DOMContentLoaded’, function() {
if (!document.querySelectorAll(‘.widget.video.vms’).length) {
var s = document.createElement(‘script’);
s.type = ‘text/javascript’;
s.async = true;
s.src = ‘https://independent.mainroll.com/a/independent_floating_outstream.js?dfp_adunit_l1=InArticleVideo&dfp_adunit_l2=World_News&dfp_adunit_l3=Home&dart_articleId=36906577&dart_art_ID=36906577&dart_kw=%5B%22Mount%20Everest%22%2C%22Nepal%22%2C%22Chinese%22%2C%22double%22%2C%22amputee%22%2C%22conquers%22%2C%22Mount%22%2C%22Everest%22%2C%22aged%22%2C%2269%22%5D&section=worldnews’;
document.getElementById(‘bb-outstream-37199872’).parentElement.appendChild(s);
}
});

#bb-iawr-inarticle- { clear: both; margin: 0 0 15px; }

Press Association

!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?’http’:’https’;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+’://platform.twitter.com/widgets.js’;fjs.parentNode.insertBefore(js,fjs);}}(document, ‘script’, ‘twitter-wjs’);

(function() {
var zergnet = document.createElement(‘script’);
zergnet.type = ‘text/javascript’; zergnet.async = true;
zergnet.src = (document.location.protocol == “https:” ? “https:” : “http:”) + ‘//www.zergnet.com/zerg.js?id=46430’;
var znscr = document.getElementsByTagName(‘script’)[0];
znscr.parentNode.insertBefore(zergnet, znscr);
})();