OSB Group PLC reported first-half 2026 results and lowered its full-year net interest margin guidance to 215-220 basis points from 225 basis points, while also revising its return on tangible equity target to circa 12.5%, citing persistent elevated retail funding costs and market volatility. Net interest income rose 1% to GBP340 million, but net interest margin slipped to 223 basis points from 226 basis points for full-year 2025. Profit before tax declined 3% to GBP187 million, while basic earnings per share increased 3% to GBP0.384. The net loan book grew 1.3% to GBP26.3 billion, driven by buy-to-let originations exceeding GBP1 billion, and retail deposits expanded 3% to nearly GBP25 billion. The company maintained cost discipline with core costs down 0.4% to GBP117.4 million, though total administrative expenses rose 4% to GBP136.5 million due to transformation program investment. A 5% interim dividend increase and a GBP100 million share buyback program were announced, with circa GBP69 million repurchased so far. The CET1 ratio stood at 15.2%, or 14% pro forma after Basel 3.1 impact.
OneSavings Bank PLCOSB Group lowered 2026 NIM and RoTE guidance due to elevated funding costs, and profit before tax declined.
