OSB Group’s total new loans fell 14.9% to £4 billion last year, and 12 months ago it maintained a “discipline attitude” to price new loans.
“The reduction in original origin is the result of our discipline pricing of new businesses and priority returns, we said in an annual statement.
It added: “We chose not to follow some lenders to reduce the differences in new businesses in certain sub-segments, which led to an improvement in the year and an attractive mixed prequel margin.”
The group owns a range of lenders, including OneSavings Bank, Kent Reliance and Precise Mortgages.
It noted: “Despite the increase in total mortgages on mortgages, the UK mortgage market has still yielded as the reduction in the Bank of England base rate and the lower Sonia swap exchange rate is reflected in the mortgage pricing.”
It highlights financial data from the UK, which says the balance of outstanding mortgage purchases increased by 1% last year, “reflecting on the ongoing burdensome pressures faced by some amateur landlords”.
During 2024, the group focused on “higher income” commercial and residential development financial loans, up 10% to £446.8 million and £189.1 million respectively. Bridge Origins grew by 5%.
Its loan book fell 2% to £25.1 billion, mainly due to the securitization of precise landlord loans in December of £1.25 billion.
“Given our focus on returns, we expect low unit loan book growth in 2025, with a dynamic similar to 2024,” the business said.
It added, “In the next two years, we will focus on growing across all segments, especially with strong and sustainable outputs such as commercial lending, asset financing, development financing and bridges”.
The group posted a pre-tax profit up 12 per cent to £418.1 million.
“The results provided by OSB Group in 2024 show that fundamentals are the foundation of our business, as well as strategic choices for focus and disciplinary action made by the board and management this year that will shape the future of the group.”
The company began a new stock buyback program over the next 12 months on March 14.
Stocks rose 3% to 433p in early trading.
