OneSavings Bank reported its first half-year earnings for 2016, causing stocks to jump on strong profit growth.
The bank reported an increase in underlying profits before taxation to £64.6 million in the first half of 2016. The figure is up 36 percent on the same period last year.
Gross new organic lending increased 25 percent to £973 million. This figure, alongside new acquisitions worth £131 million, drove loan book growth up 10 percent in the first half of 2016.
The net interest margin was up 2 bps from the first half of 2015 to 307bps at the 30. June 2016. While cost to income ratio rose one percent, it still remains low at 27 percent.
An interim dividend of 2.9 pence per share was proposed for the first half of 2016, payable on the 4. November. The amount is based on a third of the total dividend of 8.7 pence per share paid in 2015. The interim dividend is 0.9 pence larger than last year’s first-half figure.
Group CEO Andy Golding, commented on the results:
“I am delighted that OneSavings Bank has delivered another strong set of results for the first half of 2016.”
“We have achieved all of our financial objectives since IPO and the strength of our balance sheet, together with the high quality of our secured asset portfolio, positions us well in the current uncertain economic climate.”
“It is too soon to predict the medium to long-term impact of Brexit on the UK economy, but we will continue to concentrate on what we have proven we do best; using our broker relationships, manual underwriting expertise and secured lending strategy to lend responsibly to customers in underserved markets. We remain well placed to take advantage of opportunities that arise using these well proven capabilities.”
One Savings Bank plc (LON: OSB) started trading on the 1. February 2011, floating on the London Stock Exchange in June 2014.
The group’s stocks struggled after their IPO, seeing little upward movement throughout the first half of 2016 and falling to 179.8, its lowest since November 2014, after the European Referendum.
However, today’s earning release send share prices up to a new two month-high at 268.9 pence, up 13.9% from market open at 3.30pm.
Katharina Fleiner 24/08/2016
