Osb Share Discussion Threads

[nurdin] 10/4/2015 11:03

Still going...buys coming in at full ask price now. Should punch through 300p soon...if I havent jinxed it !

[nurdin] 08/4/2015 15:21

Yes Mike..on a nice breakout now

[mikeja] 08/4/2015 14:48

Exactly what I have been saying for months,nurdin.Looks like a third leg up developing on the chart.

[nurdin] 07/4/2015 18:46

Very positive comments in last weeks IC .Will post details later but the main gist is that its the cheapest so called 'challenger banks' on the market.The prospect of lifting its loan book is also enhanced by the Governments decision to sell off £13bn worth of mortgage assets it still holds from the bailout of Northern Rock and Bradford and Bingley.All in all there is plenty of space to grow.

The future certainly looks rosy.

[future financier] 01/4/2015 11:13

Shawbrook is a class act and growing fast. The more interesting comparison is between Shawbrook and Aldermore which are very similar (both have commercial lending operations, short term lending and asset finance - and once again Shawbrook is at a significant premium. OSB is doing extremely nicely out of its purchased books - but it is not in the commercial finance arena. I suspect that part of the reason for the difference in valuations is the thought that the opportunity to buy in books of business at a significant discount may not last for ever.

[mikeja] 01/4/2015 08:28

Shawbrook started trading today with a current mkt cap of around £775m.2014 pretax of £49m compares to £69.7m for OSB,yet OSB has a mkt cap of 668m,further emphasising the ridiculous undervaluation of OSB compared to its peers.

[mikeja] 27/3/2015 17:13

Numis are always the most bearish of bank analysts,they have PAG on strong sell with tgt of 289

[nurdin] 26/3/2015 15:43

1.4% down on what is a bad day for the market isnt bad...looks to me Numis view is not carrying much weight.

[someuwin] 26/3/2015 15:15

Just seen this headline but don't know the details...

26/03/2015 15:03 "IN THE KNOW: Numis Downgrades OneSavings Bank After Share Rally"

[melody9999] 26/3/2015 09:32

Yep ..and that is ignoring the possibility of acquisition given activity in the sector.

[mikeja] 25/3/2015 16:09

Numis generally very conservative.Latest acquisition shows board not resting on their laurels.Main impact on H2.

[nurdin] 25/3/2015 12:10

Thanks someuwin.Those price targets look extremely low imo,specially when you consider that their peers are trading at some 15-18x earnings compared to 9x (or even less) for OSB .Dont know which planet these analysts live on !!

Lets see what Numis come up with.

[someuwin] 25/3/2015 09:55

Meanwhile Macquarie raises target to 280p

And Canaccord downgrades to 'hold'



"25 Mar 2015 Onesavings Bank OSB Macquarie Outperform 240.00 280.00 Retains"


"25 Mar 2015 Onesavings Bank OSB Canaccord Genuity Hold 290.00 290.00 Downgrades"

[someuwin] 25/3/2015 09:16

Numis target under review - expect big re-rating.

25 Mar 2015
Onesavings Bank OSB
Numis
Add
Old target 274.75
New target -
Under Review

[someuwin] 25/3/2015 08:49

Sounds like good news to me.

[someuwin] 25/3/2015 07:09

25 March 2015

ONESAVINGS BANK PLC

Acquisition of UK 2(nd) charge mortgages (the "Transaction")

OneSavings Bank plc (the "Group") today announces that it has completed
the purchase of a portfolio of UK 2(nd) charge mortgages (the
"Portfolio").

The mortgages are being acquired from a major global financial services
organisation which ceased originating UK 2(nd) charge mortgages in 2008
but has been continuously managing the Portfolio.

The Portfolio consists of unregulated UK 2(nd) charge mortgages with a
current balance of GBP251m as at 31 December 2014. The Portfolio is
being acquired at a small premium to par reflecting attractive
characteristics including:


-- Weighted average interest rate above 9%.

-- Weighted average current loan-to-value of around 70%.

-- Predominantly performing loan book.

-- Well diversified across the UK regions.


The Transaction is in the ordinary course of the Group's business and
has been satisfied by cash from the Group's resources. The Portfolio
will add to the Group's overall loan portfolio of GBP3.9bn as at 31
December 2014. The Group continues to maintain a CET1 ratio well above
its minimum risk appetite of 10%.

The full transfer of legal title and servicing will take place over a
period of approximately 4-6 months. The sale will not affect the terms
and conditions of the mortgages in the Portfolio and the borrowers will
be contacted directly by the Seller and the Group at the time of
servicing responsibility transfer.

Commenting on the Transaction, CEO of OneSavings Bank, Andy Golding
said:

"The addition of this loan book is consistent with our overall strategy
for the Group. Organic origination remains the key driver of our growth
but we evaluate inorganic opportunities as they arise. We have
disciplined investment criteria and make acquisitions where there is a
fit in terms of strategy, risk profile and projected financial returns."

Group Commercial Director, Jens Bech added:

"This portfolio provides us with meaningful expansion of our second
charge mortgage book, an attractive segment in which we have origination
expertise. I am confident, given our success in integrating other loan
portfolios, that we will be able to leverage our cost efficiency and
asset management capabilities to generate value whilst ensuring fair
treatment of customers".

[mikeja] 24/3/2015 21:09

Sorry,exaggerated ALD profit,was £56m for 2014,shares on a p/e of 18 compared to 11 for OSB.

[mikeja] 24/3/2015 16:26

Just been checking it against Aldermore,ALD,which has mkt cap of £810m and pretax of £63m against £70m for OSB with mkt cap of £675m.I suppose it depends on growth rates,ALD look interesting as well albeit rather more expensive and there seems to be a fair amount of stock available there

[mikeja] 24/3/2015 14:20

Just to explain how I get to 17p,I have worked from the increase in lending from H1 to H2 which is 30%,assuming this falls into the following half year would give eps of 16.4p but the management have shown very strong cost control capabilities which should continue to drive up margins.For the full year I am looking between 34p and 36p.The two important factors to watch are ROE and increase in lending.
Incidentally I note that ltv is around 70% so pretty conservative.

[nurdin] 24/3/2015 13:47

Yes Mike,just found out that Numis have yet to upgrade.

RBC and Barclays are both forecasting 28p..which is more like it but still look on the light side.

[mikeja] 24/3/2015 13:25

They are pre announcement,nurdin,need updating

[someuwin] 24/3/2015 11:00

These are still a strong buy imo.