Osb Share Discussion Threads

[74tom] 07/7/2023 08:53

How’s it a big adjustment vs a £23b loan book at 31/12 that grew at 7%? (So is presumably now ~£24.5m). I’s less than 0.5%… No cash impact either.

£500m knocked off the valuation seems a bit OTT, especially as it was on a PE of 4.5x before today & that change doesn’t impact underlying earnings or FCF…

[riverman77] 07/7/2023 08:03

It is a big adjustment to the loan book - 160 to 180m. The question is if this is just a one off or we could see more write downs.

[lord gnome] 07/7/2023 07:35

Brutal market reaction. I don’t think anyone saw that coming. Hopefully this is a one-off event - hopefully!

[lord gnome] 07/7/2023 07:12

Post 1194 hasn’t aged well. Oops,

[deadly] 04/7/2023 07:42

So-called trading statement today mis-labelled:actually share transactions.

[pj84] 13/6/2023 21:05

"OSB ‘cheap’ after mini banking crisis, says CT’s Webster

One Savings Bank (OSB) remains ‘cheap’ after the selloff in banking stocks in the wake of the collapse of Silicon Valley Bank in the US, says Columbia Threadneedle’s Philip Webster.

Webster has nudged the Citywire Elite Companies AAA-rated challenger bank into the top-10 holdings of his CT UK High Income (CHI) trust, where it makes up 3.5% of the £119m portfolio.

Yesterday Citywire revealed OSB was the favourite UK bank of top fund managers.

‘Having added to One Savings Bank following the Silicon Valley Bank selloff, it has had a nice bounce on the back of a solid set of results,’ he said.

‘It saw first-quarter loan growth of 3% and has raised the full-year 2023 guidance from 5% to 7%. It has managed to deliver this against expectations of flat margins and cost-income ratio flat at 2%.’

Webster said it was also ‘very pleasing to note that losses have also been benign’.

‘With a price-to-earnings ratio of five times, and a 7% ordinary dividend yield, this remains cheap,’ he said.

The shares rose 0.8%, or 4p, to 529.5p on Monday."

[1318myl] 09/6/2023 10:08

Many thanks for the info

[rcturner2] 09/6/2023 06:31

On the 3rd of May they said:

Trading update

OSB GROUP PLC (OSBG or the Group), the specialist lending and retail savings group, today issues its trading update for the period from 1 January 2023 to date.

Highlights

-- Strong financial and operational performance continued throughout the
first quarter

-- Organic originations of GBP1.2bn in the first three months of 2023 (Q1
2022: GBP1.1bn)

-- Underlying1 and statutory net loans and advances increased by 3% in the
first quarter to GBP24.2bn (31 December 2022: GBP23.5bn and GBP23.6bn,
respectively)

-- The Group's three months plus arrears balances remained stable at 1.1% as
at 31 March 2023 (31 December 2022: 1.1%)
-- The Group has repurchased GBP20.1m worth of shares at the end of April
under the GBP150m share repurchase programme

[1318myl] 08/6/2023 12:27

Hi all, does anyone know when OSB will announce the next update? Hopefully it will be good or as good as the Paragon update.

[thebutler] 06/6/2023 08:35

Good update by peer Paragon, filtering through to here.

[rcturner2] 06/6/2023 08:04

Still going well.

Rated a "super stock" on Stockopedia, stock rank of 91.

[thamestrader] 17/5/2023 09:25

Nice divi, thanks OSB

[apple53] 17/5/2023 08:46

PEG ratios don't normally work for banks. The big swing factor is normally provisioning, which is normally low ex-post, while any analyst worth his/her salt will have provisions (at least) 'normalising' (ie to cross-cycle levels) over the next year or two, which will inherently depress the eps growth rate. However, as long as analysts do this then the forward PE (let's say 2024-5) should be a good indication of underlying value. And with OSB's super low cost income ratio one can even put provision charges on 50% above cross-cycle to allow for some housing market challenges, and it will still be ridiculously cheap.

For me the challenge is allocating cash across the bank sector as they are all so cheap. I think STB is cheapest below £7 so my largest holding, but a decent bounce and I would shift a chunk to OSB (while keeping an eye on Virgin and even Barclays).

I'd say OSB is the most bullet proof listed financial in the UK in terms of earnings (not share price, since market doesn't get this). Check out where financials' shares are vs Covid low. All bounced like crazy but on a quick check I think OSB has done best (in holding on to its rebound).

[brucie5] 15/5/2023 08:40

RC, Thanks.

[rcturner2] 14/5/2023 07:36

Brucie, I always calculate the yield myself as the way stocko presents the numbers means they tend to headline with future figures.

OSB's last full year dividend was 30.5p which is a yield of 6.14%.

[brucie5] 13/5/2023 11:36

I would certainly see this at 5.50 on the chart, though there's a declining range of peaks. Obviously doesn't affect the value case.

From Stocko- so can be misleading especially on the yield!

PE Ratio (f)
4.9
PEG Ratio (f)
0.9
EPS Growth (f)
6.0%
Dividend Yield (f)
8.34%

[thebutler] 03/5/2023 06:36

Great update imo, and a steal at 500p whilst the Market continues to shun the banks.

[rcturner2] 03/5/2023 06:05

Decent trading update from OSB today for Q1. Raised full year guidance.

[apple53] 23/3/2023 11:31

Not sure it's any cheaper than yesterday, but thanks for pointing out it's ex-d!!

[petewy] 23/3/2023 10:27

Good point

[jonnybig] 23/3/2023 09:01

Time for osb to hoover up all the cheap ex div stock.

[apple53] 17/3/2023 01:24

Has been a growth stock for ages, but never got a growth multiple (ie 15x!). Maybe it's not a growth stock any more - loan growth guidance suggests zero real growth. Meanwhile, 2022 hiring will hit fully in 2023 and put CIR at 29% (expected), higher than I can remember, but still ridiculously low meaning earnings are extremely resilient against (credit) shocks.
Even if not a growth stock it is surely worth a US regional bank multiple (10-12x I guess but maybe a bit lower now).
Really pleased to see them beginning to build up provisions despite not actually needing them (yet) as it was always a criticism that earnings were overstated due to low/zero/negative credit charge.

The buybacks are sustainable for years, especially with lower loan growth.

I can't remember if they did them too quickly last time. I should check.

I switched some STB in to an already large position at £5 (when STB £8), but not enough. Also switched some STB to IQE, more fool me.
I have learnt to 'trade' OSB, but want to be disciplined and wait for £6 before seeing if there is anything more attractive.

[jonnybig] 16/3/2023 09:57

Top on ftse riser list. Great stuff but still ridiculously cheap with a p/e well under 10 despite strong continued growth.

[curriedquaker] 16/3/2023 08:46

Special dividend of 11.7p on top of the 21.8 p makes an attractive 33.5p to be paid in May on top of the £150m share repurchase.