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OneSavings Bank sees lending increase

OneSavings Bank sees lending increase

OneSavings Bank has reported an increase in its loan book.

The challenger bank's lending grew 17 per cent for the nine months to 30 September 2017 with net loans and advances growing by £997m to £6.9bn during the period.

This compared to £466m and £5.6bn, respectively for the same period last year.

Organic originations were £677m in the three months to 30 September 2017, compared to £510m for the same period last year..

To date the Group has drawn a total of £1bn under the Term Funding Scheme (TFS) and drawings under the Funding for Lending Scheme (FLS) have been reduced to £92m.

The TFS aims to reinforce the transmission of Bank Rate cuts to those interest rates actually faced by households and businesses by providing term funding to banks at rates close to Bank Rate.

The FLS, designed to incentivise banks and building societies to boost their lending to the UK real economy, provides funding to them for an extended period with the price and quality of funding linked to their lending performance. 

The bank said it has a strong capital position and is predicting net loan book growth of around 20 per cent for the full year in 2017, whilst keeping its net interest margin for the full year broadly flat to 2016 and the cost to income ratio broadly flat to the first half.

Andy Golding, chief executive officer of OneSavings Bank, said the business continues to focus on professional landlords and increase its market share.