OSB Group (OSB) Q3 2026 TU earnings summary

Executive summary

• Nine-month performance was resilient, in line with 2026 guidance; originations rose and strong capital generation continued in Q3.

• Loan book growth remained in line with expectations at end-October, with new lending written at sustainable margins.

Financial highlights

• Net loan book rose 1.9% (£502.6m) to £26,423.2m from Dec 2025; originations increased 4% to £3.5bn from £3.4bn.

• Retail deposits increased 3.0% (£735.7m) to £24,986.8m; total assets declined 0.5% to £30,959.2m amid liquidity portfolio optimisation.

• A small Q3 fair-value gain on unhedged mortgage pipeline swaps was mostly offset by a small increase in impairment charge.

Outlook and guidance

• 2026 guidance remains unchanged from interim results; longer-term aspirations remain intact.

• Basel 3.1 implementation from 1 Jan 2027 is expected to reduce the CET1 ratio at 30 Jun 2026 by 1.2%, reflecting a 9% RWA uplift.

• From 1 Jan 2027, the Pillar 2A requirement is expected to fall 55bps, lowering minimum capital requirements from 9.5% to 8.9%.

• Capital needs, target and shareholder distributions for 2027 will be reviewed as capital requirement clarity improves; ROTE guidance excludes the Holdco tender outcome.