ONESAVINGS BANK PLC Q3 Trading Update

 
TIDMOSB 
 
 
   LEI: 213800WTQKOQI8ELD692 
 
   OneSavings Bank plc: Trading update 
 
   Published: 13.11.2019 
 
   OneSavings Bank plc 
 
   Trading update 
 
 
 
   OneSavings Bank plc (OSB), the specialist lending and retail savings 
Group, today issues its trading update for the period from 1 July 2019 
to date. 
 
   As the recommended all share combination between OSB and Charter Court 
Financial Services Group plc (CCFS) completed on 4 October 2019, the 
financial highlights below cover OSB group and CCFS group separately. 
 
   OneSavings Bank plc 
 
 
   -- Loan book growth of 15% for the nine months to 30 September 2019, with 
      net loans and advances up by GBP1,307m to GBP10.3bn during the period (30 
      September 2018: GBP1,175m and GBP8.5bn, respectively) 
 
   -- New originations of GBP842m in the three months to 30 September 2019 (Q3 
      2018: GBP730m) and GBP2.5bn for the nine months to 30 September (nine 
      months to 30 September 2018: GBP2.2bn) 
 
   -- As previously guided, we expect to deliver net loan book growth of 
      high-teens for 2019. We expect net interest margin (NIM) to be broadly 
      flat for the full year compared to the first half, in-line with 
      management expectations 
 
 
   Charter Court Financial Services Group plc 
 
 
   -- Loan book growth of 4% for the nine months to 30 September 2019 (21% 
      excluding the impact of structured asset sales) with net loans and 
      advances up by GBP236m to GBP6.9bn (30 September 2018: GBP787m and 
      GBP6.2bn respectively) 
 
   -- New originations of GBP865m in the three months to 30 September 2019 (Q3 
      2018: GBP708m) and GBP2.4bn for the nine months to 30 September (nine 
      months to 30 September 2018: GBP2.1bn) 
 
   -- As previously announced, residual interests in three securitisations sold 
      for a pre-tax gain of GBP58.6m in the nine months to 30 September 2019, 
      resulting in the derecognition of GBP1,293m of underlying mortgage assets 
      and associated risk weighted assets (30 September 2018: GBP36.4m and 
      GBP562.5m respectively) 
 
   -- We expect to deliver high-twenties net loan book growth for 2019, 
      excluding the impact of the above structured asset sales, and full year 
      NIM to be slightly lower than the first half, in-line with management 
      expectations 
 
 
 
   Andy Golding, CEO of OneSavings Bank, said: 
 
   "I am delighted that we successfully completed our combination with 
Charter Court Financial Services Group on 4 October 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. 
 
   Continued strong performance from both groups in the first nine months 
of the year delivered 15% net loan book growth for OSB and 21% for CCFS, 
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 Q1 2020. 
 
   In addition to strong retail savings franchises, we have excellent 
capabilities in the securitisation market which allow us to diversify 
our funding. I am pleased that in July 2019, OSB securitised GBP500m of 
organically originated mortgages under our newly established Canterbury 
Finance RMBS programme, which was well received in the market. During 
the quarter, Charter Mortgages Limited successfully sold a residual 
interest in the Precise Mortgage Funding 2019-1B plc, which generated a 
pre-tax gain of GBP28.8m. 
 
   We remain cognisant of the continued uncertain macroeconomic and 
political outlook, however we believe that as a combined business we are 
well placed to continue to deliver on our strategy and generate 
attractive shareholder returns through the cycle." 
 
   Enquiries: 
 
   OneSavings Bank plc 
 
   Alastair Pate t: 01634 838 973 
 
   Brunswick Group 
 
   Robin Wrench / Simone Selzer t: 020 7404 5959 
 
   Financial calendar for 2020 * 
 
 
 
 
19 March 2020     2019 year end results 
----------------  ---------------------- 
6 May 2020        Q1 trading update 
----------------  ---------------------- 
7 May 2020        AGM 
----------------  ---------------------- 
27 August 2020    2020 half year results 
----------------  ---------------------- 
12 November 2020  Q3 trading update 
----------------  ---------------------- 
 
 
   * All dates are subject to change 
 
   About OneSavings Bank plc 
 
   OneSavings Bank plc (OSB) began trading as a bank on 1 February 2011 and 
was admitted to the main market of the London Stock Exchange in June 
2014 (OSB.L). OSB joined the FTSE 250 index in June 2015. On 4 October 
2019, OSB acquired Charter Court Financial Services Group plc (CCFS) and 
its subsidiary businesses. OSB is a specialist lending and retail 
savings Group authorised by the Prudential Regulation Authority, part of 
the Bank of England, and regulated by the Financial Conduct Authority 
and Prudential Regulation Authority. 
 
   OneSavings Bank 
 
   OSB primarily targets market sub-sectors that offer high growth 
potential and attractive risk-adjusted returns in which it can take a 
leading position and where it has established expertise, platforms and 
capabilities. These include private rented sector Buy-to-Let, commercial 
and semi-commercial mortgages, residential development finance, bespoke 
and specialist residential lending, secured funding lines and asset 
finance. 
 
   OSB originates mortgages organically via specialist brokers and 
independent financial advisers through its specialist brands including 
Kent Reliance for Intermediaries, InterBay Commercial and Prestige 
Finance. It is differentiated through its use of highly skilled, bespoke 
underwriting and efficient operating model. 
 
   OSB is predominantly funded by retail savings originated through the 
long-established Kent Reliance name, which includes online and postal 
channels as well as a network of branches in the South East of England. 
Diversification of funding is currently provided by securitisation 
programmes, the Term Funding Scheme and the Bank of England Indexed 
Long-Term Repo operation. 
 
   Charter Court Financial Services Group 
 
   CCFS focuses on providing Buy-to-Let and specialist residential 
mortgages; mortgage servicing, administration and credit consultancy; 
and retail savings products. It operates through its three brands -- 
Precise Mortgages, Exact Mortgage Experts and Charter Savings Bank. 
 
   It is differentiated through risk management expertise and best-of-breed 
automated technology and systems, ensuring efficient processing, strong 
credit and collateral risk control and speed of product development and 
innovation. These factors have enabled strong balance sheet growth 
whilst maintaining high credit quality mortgage assets. 
 
   CCFS is predominantly funded by retail savings originated through its 
Charter Savings Bank brand. Diversification of funding is currently 
provided by securitisation programmes, the Term Funding Scheme and the 
Bank of England Indexed Long-Term Repo operation. 
 
   Important disclaimer 
 
   This document should be read in conjunction with the documents 
distributed by OneSavings Bank plc (OSB) through the Regulatory News 
Service ('RNS'). This document is not audited and contains certain 
forward-looking statements, beliefs or opinions, including statements 
with respect to the business, strategy and plans of OSB and its current 
goals and expectations relating to its future financial condition, 
performance and results. Such forward-looking statements include, 
without limitation, those preceded by, followed by or that include the 
words 'targets', 'believes', 'estimates', 'expects', 'aims', 'intends', 
'will', 'may', 'anticipates', 'projects', 'plans', 'forecasts', 
'outlook', 'likely', 'guidance', 'trends', 'future', 'would', 'could', 
'should' or similar expressions or negatives thereof. Statements that 
are not historical facts, including statements about OSB's, its 
directors' and/or management's beliefs and expectations, are 
forward-looking statements. By their nature, forward-looking statements 
involve risk and uncertainty because they relate to events and depend 
upon circumstances that may or may not occur in the future. Factors that 
could cause actual business, strategy, plans and/or results (including 
but not limited to the payment of dividends) to differ materially from 
the plans, objectives, expectations, estimates and intentions expressed 
in such forward-looking statements made by OSB or on its behalf include, 
but are not limited to: general economic and business conditions in the 
UK and internationally; market related trends and developments; 
fluctuations in exchange rates, stock markets, inflation, deflation, 
interest rates and currencies; policies of the Bank of England, the 
European Central Bank and other G8 central banks; the ability to access 
sufficient sources of capital, liquidity and funding when required; 
changes to OSB's credit ratings; the ability to derive cost savings; 
changing demographic developments, and changing customer behaviour, 
including consumer spending, saving and borrowing habits; changes in 
customer preferences; changes to borrower or counterparty credit 
quality; instability in the global financial markets, including Eurozone 
instability, the potential for countries to exit the European Union (the 
EU) or the Eurozone, and the impact of any sovereign credit rating 
downgrade or other sovereign financial issues; technological changes and 
risks to cyber security; natural and other disasters, adverse weather 
and similar contingencies outside OSB's control; inadequate or failed 
internal or external processes, people and systems; terrorist acts and 
other acts of war or hostility and responses to those acts; geopolitical, 
pandemic or other such events; changes in laws, regulations, taxation, 
accounting standards or practices, including as a result of an exit by 

the UK from the EU; regulatory capital or liquidity requirements and 
similar contingencies outside OSB's control; the policies and actions of 
governmental or regulatory authorities in the UK, the EU or elsewhere 
including the implementation and interpretation of key legislation and 
regulation; the ability to attract and retain senior management and 
other employees; the extent of any future impairment charges or 
write-downs caused by, but not limited to, depressed asset valuations, 
market disruptions and illiquid markets; market relating trends and 
developments; exposure to regulatory scrutiny, legal proceedings, 
regulatory investigations or complaints; changes in competition and 
pricing environments; the inability to hedge certain risks economically; 
the adequacy of loss reserves; the actions of competitors, including 
non-bank financial services and lending companies; and the success of 
OSB in managing the risks of the foregoing. 
 
   Accordingly, no reliance may be placed on any forward-looking statement 
and no representation, warranty or assurance is made that any of these 
statements or forecasts will come to pass or that any forecast results 
will be achieved.  Any forward-looking statements made in this document 
speak only as of the date they are made and it should not be assumed 
that they have been revised or updated in the light of new information 
of future events. Except as required by the Prudential Regulation 
Authority, the Financial Conduct Authority, the London Stock Exchange 
PLC or applicable law, OSB expressly disclaims any obligation or 
undertaking to release publicly any updates or revisions to any 
forward-looking statements contained in this document to reflect any 
change in OSB's expectations with regard thereto or any change in events, 
conditions or circumstances on which any such statement is based. For 
additional information on possible risks to OSB's business, please see 
the "Risk Review" section of the OSB 2018 Annual Report and Accounts. 
Copies of this are available at www.osb.co.uk and on request from OSB. 
 
   Nothing in this document and any subsequent discussion constitutes or 
forms part of a public offer under any applicable law or an offer to 
purchase or sell any securities or financial instruments. Nor does it 
constitute advice or a recommendation with respect to such securities or 
financial instruments, or any invitation or inducement to engage in 
investment activity under section 21 of the Financial Services and 
Markets Act 2000. Past performance cannot be relied on as a guide to 
future performance. Nothing in this document is intended to be, or 
should be construed as, a profit forecast or estimate for any period. 
 
   Liability arising from anything in this document shall be governed by 
English law, and neither the Company nor any of its affiliates, advisors 
or representatives shall have any liability whatsoever (in negligence or 
otherwise) for any loss howsoever arising from any use of this document 
or its contents or otherwise arising in connection with this document. 
Nothing in this document shall exclude any liability under applicable 
laws that cannot be excluded in accordance with such laws. 
 
   Certain figures contained in this document, including financial 
information, may have been subject to rounding adjustments and foreign 
exchange conversions. Accordingly, in certain instances, the sum or 
percentage change of the numbers contained in this document may not 
conform exactly to the total figure given. 
 
 
 
 

(END) Dow Jones Newswires

November 13, 2019 02:00 ET (07:00 GMT)

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