OSB Group plc, the specialist lending and retail savings group listed on the London Stock Exchange, has published its trading update for the nine months to 30 September 2026, reporting a net loan book of £26.4bn and originations of £3.5bn. The group confirmed performance remains in line with its 2026 guidance despite an uncertain macroeconomic backdrop and elevated mortgage rates. Separately, the group announced a tender offer for two series of Senior Holdco securities totalling £700m in nominal value, following a change to its resolution strategy by the Bank of England. Investors will also note the completion of the £100m share repurchase programme and the group's intention to review capital targets and shareholder distributions for 2027.

Key Points

  • OSB Group plc (OSB), specialist lending and retail savings group, listed on the London Stock Exchange
  • Net loan book grew 1.9% to £26.4bn in the nine months to 30 September 2026, supported by originations of £3.5bn
  • CET1 ratio stood at 15.4%; tender offer launched for £300m 9.5% and £400m 8.875% Senior Holdco securities
  • Investors should watch the planned 2027 investor update and the group's review of capital targets and shareholder distribution policy

OSB Group Net Loan Book Reaches £26.4bn as Buy-to-Let and Residential Originations Drive Nine-Month Growth

OSB Group's net loan book increased by 1.9%, or £502.6m, to £26,423.2m over the first nine months of 2026, compared with £25,920.6m at 31 December 2025. Originations rose 4% to £3.5bn against £3.4bn in the same period of 2025, led by the group's Buy-to-Let and Residential franchises. The announcement states that originations in higher-yielding sub-segments declined modestly due to macroeconomic uncertainty and elevated mortgage rates. Retail deposits grew 3.0%, or £735.7m, to £24,986.8m, while the group drew £400m of central bank facilities in the third quarter, leaving an outstanding balance of £656.8m at 30 September 2026.

CET1 Ratio Remains Robust at 15.4% Following Completion of £100m Share Buyback and Basel 3.1 Guidance

OSB Group's CET1 ratio stood at 15.4% at 30 September 2026, a reduction of 40 basis points from 15.8% at 31 December 2025, partly reflecting the completed £100m share repurchase programme. The group has now repurchased £550m worth of shares since 2022, representing 34% of current market capitalisation. The announcement states that Basel 3.1 implementation on 1 January 2027 is expected to reduce the CET1 ratio as at 30 June 2026 by 1.2%, while simultaneously reducing the group's minimum capital requirements from 9.5% to 8.9% through a 55 basis point reduction to its Pillar 2A requirement. Three months plus arrears remained stable at 1.6%.

Tender Offer Launched for £700m of Senior Holdco Securities Following Bank of England Resolution Strategy Change

OSB Group has announced a tender offer for its £300m Senior Holdco 9.5% securities due September 2028 and its £400m Senior Holdco 8.875% securities due January 2030. The announcement states this follows a change in the Bank of England's preferred resolution strategy for the group to Transfer from 1 January 2026, which means the group's MREL requirement now equals its minimum capital requirements. As a result, these Senior Holdco securities are no longer required to meet the group's current MREL obligations. The company described the transaction as expected to provide positive financial benefit out to 2029, subject to terms and jurisdictional restrictions set out in a separate announcement.

Kent Reliance Platform Migration Completed and New Lending System Passes £1bn Buy-to-Let Milestone

OSB Group's transformation programme reached several milestones in the third quarter. The migration of Kent Reliance online savings customers to the new savings platform was completed, with 253,000 accounts and £7.1bn of balances now held on the system. The group's new lending platform processed Residential mortgage applications to offer in under five days for 65% of cases, and Buy-to-Let mortgages on the platform surpassed the £1bn balance sheet milestone. Kent Reliance Flexible ISAs were launched in September, and a new Kent Reliance savings app designed at OSB India is now available on Google Play Store. A cloud-based, AI-enabled platform has replaced more than 2,000 letters per month with automated communications across Kent Reliance financial support operations.