13th Nov 2019 10:31
(Alliance News) - OneSavings Bank PLC on Wednesday reported a solid performance for the first nine months of 2019 with loan book growth and new originations.
The FTSE 250-listed mortgage lender covered the performances of its own business and Charter Court Financial Services Group PLC's separately, as the merger of the two banks was completed on October 4, after the reporting period.
For OneSavings, the loan book increased by 15% for the nine months to the end of September, with net loans and advances up 21% to GBP10.3 billion from GBP8.5 billion the same period the year before.
For the three-month period, new originations increased by 15% to GBP842 million from GBP730 million the prior year. On a nine-month basis, originations rose by 14% to GBP2.5 billion from GBP2.2 billion.
Looking ahead, OneSavings expects to deliver net loan book growth for 2019 in the high teens as a percentage, while net interest margin is set to be broadly flat, in line with management expectations.
Meanwhile, Charter Court's loan book for the nine months rose by 4% to GBP6.9 billion from GBP6.2 billion the year before.
New originations for the third quarter increased by 22% year-on-year to GBP865 million from GBP708 million. On a nine-month basis, originations rose by 14% to GBP2.4 billion from GBP2.1 billion.
OneSavings said Charter Court's loan book is expected to grow in 2019 in the high twenties percentage, with its net interest margin at the end of the year to be slightly lower compared to its reading in the first half.
"I am delighted that we successfully completed our combination with Charter Court Financial Services Group on October 4 and we are now in the early stages of integrating the two businesses. We remain focused on delivering shareholder value as we execute on the strategy for the enlarged group," said OneSavings Chief Executive Andy Golding.
"Continued strong performance from both groups in the first nine months of the year delivered 15% net loan book growth for OneSavings and 21% for Charter Court, excluding the impact of structured asset sales. Both banks' lending franchises are performing very well with strong levels of applications at attractive margins across our core product types building a robust pipeline for the first quarter of 2020," Golding added.
Shares in OneSavings - which is headquartered in Chatham - were down 0.2% at 369.60 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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