OneSavings Bank sees 5% loan growth in Q1

OneSavings Bank sees 5% loan growth in Q1

Specialist lending and retail savings group OneSavings Bank reported a 5 per cent growth of its loan book during the first three months of 2019.

The bank’s trading update, published today (May 15), showed net loans and advances grew by £448m to £9.4bn during the quarter, up from £368m and £7.7bn respectively for the same period last year.

OneSavings Bank, whose brands include buy-to-let lender Kent Reliance and second charge lender Prestige Finance, said new business played a key role in its growth during the quarter, bringing in £799m in the three months to March.

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The bank stated its asset pricing had remained stable but noted its net interest margin had reduced.

According to OneSavings Bank, this was because its higher yielding back book accounted for less of its margin now compared to front end pricing.

Andy Golding, chief executive of OneSavings Bank, said: "I am delighted with the performance that OneSavings Bank has achieved so far this year. The loan book growth to £9.4bn for the first quarter of the year was supported by £0.8bn of organic originations.

"Our lending and retail savings franchises remain strong and we have seen a good start to the year, with lending exceeding expectations. I am particularly pleased by the strong growth in our commercial and residential propositions.

"However it is still early in the year, and given the continued uncertainty surrounding Brexit, there is no change in our outlook for 2019. We continue to believe strongly in the rationale for creating a leading specialist lender in the UK through the proposed recommended combination with Charter Court Financial Services Group."

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