Specialist lending and retail savings group OSB posted record full-year profits on Thursday as it announced a £100m share buyback.
In the year to the end of December 2021, underlying pre-tax profit rose 51% to a record £522.2m, while statutory pre-tax profit was 78% higher at £464.6m, mainly due to a lower cost of retail funds and an impairment credit for the year.
The underlying and statutory net loan book increased 10% to £20.9bn and £21.1bn, respectively, supported by organic originations of £4.5bn, up 20% on the year.
Chief executive officer Adam Golding said: “Our costs continued to be managed efficiently, with our underlying management expense ratio remaining flat to the previous year.
“The group has a very strong capital position and proven capital generation capability through profitability, with the fully-loaded CET1 ratio improving further to 19.6% as at 31 December 2021 (31 December 2020: 18.3%). This has enabled the board to support strong growth and shareholder returns, and announce a £100m share buyback programme to commence on 18 March 2022.”
Based on current new business volumes, OSB expects to deliver underlying net loan book growth of around 10% in 2022.
“Recent geopolitical events, driving further inflationary pressure, do create additional uncertainty over the macroeconomic outlook,” Golding said. “The group has a proven track record of delivering strong results as a listed business and we have consistently demonstrated our resilience. The solid foundations of our business allow us face the future with optimism.”
