OSB Group (OSB) investor relations material

Executive summary

• Delivered resilient 2025 results, meeting guidance with 3.2% net loan growth and strong progress in transformation.

• Achieved all strategic targets, including a 53% increase in originations from higher-yielding segments and maintained #1 specialist lender position.

• Maintained cost discipline, with core cost growth limited to 0.8% and continued investment in transformation.

• Increased full-year dividend by 5% and completed a £100 million share buyback, with further buybacks planned.

• Transformation program delivered on schedule, enhancing operational efficiency, technology, and customer experience.

Financial highlights

• Net interest income was £679.4 million, down 2% year-over-year; NIM was 228 bps, in line with guidance.

• Profit before tax reached £382.5 million; basic EPS was 75.6p per share.

• ROTE was 13.7% and TNAV per share increased to £5.79.

• Administrative expenses rose 5% to £270.1 million, mainly due to transformation investment.

• Retail deposit balances grew 2% to £24.3 billion, supporting 3.2% loan book growth.

Outlook and guidance

• NIM guidance for 2026 is circa 225 bps, assuming normalization of funding costs.

• ROTE expected to be low teens in 2026, mid-teens in 2027–2028, and top end of mid-teens in 2029.

• Net loan book growth in 2026 anticipated to be similar to 2025; group expenses expected around £280 million.

• CET1 target set at 13–13.5% post-Basel III.1 implementation.

• Progressive dividend policy and continued commitment to return excess capital.