A different sort of newcomer bank. Formerly Kent and Reliance Building Society, most of their funding is from retail deposits and balance sheet is more easily understood than the impenetrable ones of the big banks. Heavily into the buy to let sector of lending, so rapid growth last two years likely to tail off, but nothing wrong with a good cash cow. Yield should be around 5% this year. I have bought a modest holding but always dyor.

Very solid results today, well received anf justifiably so imo.

Share price up around 50% since early July, but recent trading update suggests all is well. Just under 20p eps in first half, so does not look at all expensive imo on fundamentals, but always dyor.

IC says Finals out today, obviously not so anyone no when?

They should be out tomorrow Stan - unlikely to disappoint, but guess you never really know.

Thanks Partridge.

Excellent set of results, although bit disappointing to see large exceptional cost relating to interest rate swaps taken out years ago by Kent & Reliance Building Society. Prospects still sound and relatively simple business model appeals to me, but always dyor.

Fund managers sell 10% of OSBs share capital http://http://www.moneyam.com/action/news/showArticle?id=5520546

That's how I read it but could be wrong, please check.

SP down nearly 6%.

Not unreasonable for JC Flowers to want to sell down some of their very large stake, but uncertainty over their future policy regarding this holding may act as a bit of a drag. Up to the company to keep performing...always dyor.

Norges Bank go's over 3% after hours.

Stan

Your link has one 'http' too many (again). :-)

Thanks E/L which one the 1st or 2nd?

PRESS RELEASE

24 May 2017

Accelerated bookbuild offering of approx. 24.3 million existing shares in OneSavings Bank Plc

Citigroup Global Markets Limited ("Citi") and Credit Suisse Securities (Europe) Limited ("Credit Suisse") announce the launch of an accelerated bookbuild offering to institutional investors (the "Transaction") of approximately 24.3 million existing ordinary shares in OneSavings Bank Plc ("OneSavings Bank") (representing approximately 10% of OneSavings Bank's issued share capital) on behalf of funds managed and advised by J.C. Flowers & Co. LLC (the "JCF Funds").

Bookbuilding will commence immediately. Citi and Credit Suisse are acting as joint global coordinators and joint bookrunners in the Transaction. N M Rothschild & Sons Limited ("Rothschild") is acting as the sole financial adviser to J.C. Flowers & Co. LLC on the Transaction. A further announcement will be made following completion of the bookbuilding and pricing of the Transaction.

In parallel with the bookbuild, a number of existing ordinary shares in OneSavings Bank held on behalf of the JCF Funds equal to approx. 6% of the number to be sold under the bookbuild process ("Investor Shares") will be distributed to certain investors in the JCF Funds ("Investors"). For the avoidance of doubt, these Investor Shares are separate from and would be distributed in addition to the shares to be sold under the bookbuild arrangements.

Lock-up commitments for the period of 90 days from the closing of the Transaction, subject to certain customary exceptions, will be given by the JCF Funds.

Citi and Credit Suisse, in their capacity as joint global co-ordinators and bookrunners for the placing of ordinary shares in OneSavings Bank by the JCF Funds which completed on 28 March 2017, have consented to the Transaction and in doing so have agreed, with respect to the shares to be sold in the Transaction, to waive the lock-up restrictions which otherwise apply to such ordinary shares until 28 June 2017.

OneSavings Bank will not receive any proceeds from the Transaction.

Translation please anyone?

This comes a few days after a £60M issue of Fixed Rate, Resetting, Perpetual, Subordinated, Contingent Convertible Securities. Initial interest rate of 9.125% p.a. looks strange to me. Hope they know what it all means. I liked the relatively simple way this business operated, but have now banked very decent profit. Always dyor.

Seems a very wise move to me Partridge.

Interims: http://www.moneyam.com/action/news/showArticle?id=5638683

PS: Can you put a chart in your header please Partridge?

Too old and technically incompetent Stan (born not far from Burnley). Lost a bit of interest in these and sold after that strange bond issue. Never could work out the relevance of charts, prefer looking at numbers.

Some Director selling but nothing unreasonable http://www.moneyam.com/action/news/showArticle?id=5674888

LATEST BROKER VIEWS

Date Broker New target Recomm.
7 Sep Credit Suisse 460.00 Outperform
4 Sep Peel Hunt 435.00 Add
31 Aug Barclays... 490.00 Overweight
25 Aug Numis 349.00 Reduce
24 Aug Peel Hunt 425.00 Add
24 Aug Numis 330.00 Reduce
24 Aug Shore Capital N/A Buy
24 Aug Liberum Capital 495.00 Buy
1 Aug Shore Capital N/A Buy
21 Jul Citigroup N/A Buy

Sector seems to be trying to turn back up again today. The algo's seem to be a bit more of a hurry to buy than usual

A spot of Book building as apposed to Book binding http://www.moneyam.com/action/news/showArticle?id=5690164

LATEST BROKER VIEWS

Date Broker New target Recomm.
16 Oct Jefferies... 512.00 Buy
7 Sep Credit Suisse 460.00 Outperform
4 Sep Peel Hunt 435.00 Add
31 Aug Barclays... 490.00 Overweight
25 Aug Numis 349.00 Reduce
24 Aug Peel Hunt 425.00 Add
24 Aug Numis 330.00 Reduce
24 Aug Shore Capital N/A Buy
24 Aug Liberum Capital 495.00 Buy
1 Aug Shore Capital N/A Buy

Have you chaps traded this one at all? spread looks reasonable.

Went long on the spreads Stan 5th @ 381p stop to entry.

Thanks CC seems to be in a bit of range at the mo.

Breakout

Well done Chris. I got shaken out for a couple of points.

Thanks CC

Trading update http://www.moneyam.com/action/news/showArticle?id=5734639

Ed:Up nearly 5% on that news so far.

A nice range trade this as it's been bouncing off around 400. I've closed now.

Good luck to all that hold. Personally I'd like to see it go back to 400 so I can run the trade again but that doesn't seem very likely after this set of trading results.

Not taken profit yet on SB's have a few in ISA long term.

How strange to release the trading update again today.

Bought back in at 400.6 yesterday. Let's see how it goes this time.

15 March 2018

OneSavings Bank plc

Preliminary results for the year ended 31 December 2017

Financial highlights

Underlying profit before tax1 increased 21% to £167.7m (2016: restated2 £138.2m)

Loan book growth of 23% to £7.3bn (2016: £5.9bn) driven by 14% growth in gross originations to £2.6bn (2016: £2.3bn)

Strong income growth alongside continued focus on cost discipline and efficiency delivered a stable cost to income ratio3 of 27% (2016: 27%)

Net interest margin ('NIM')4 stable at 316bps (2016: restated2 316bps)

Further improved loan loss ratio5 of 7bps (2016:16bps)

Return on equity ('RoE')6 remained strong at 28% (2016: 29%), despite strengthening our Common Equity Tier 1 ('CET1') capital ratio to 13.7% (2016: 13.3%)

Underlying basic earnings per share7 grew 23% to 51.1 pence (2016: 41.7 pence)

Recommended final dividend8 of 9.3 pence per share giving a full year dividend of 12.8 pence per share, in line with our target dividend payout ratio

Further optimisation of capital structure through the issue of £60m of Additional Tier 1 securities
Andy Golding, CEO of OneSavings Bank, said:

"I am delighted that OneSavings Bank has delivered another excellent set of results for 2017, whilst successfully negotiating significant regulatory and tax changes in our core Buy-to-Let market.

We generated a 21% increase in underlying profit before tax and a 23% increase in underlying basic earnings per share. This was underpinned by strong organic originations, up 14% to £2.6bn, maintaining attractive margins and prudent risk management alongside continued cost efficiency and discipline. We delivered a strong return on equity of 28% despite strengthening our CET1 ratio to 13.7%.

Despite market sentiment linked to political and economic uncertainty going forward, we entered 2018 with a strong pipeline of new business in our core markets and intend to deploy our proven credit risk and operational competencies to expand our residential and commercial product offerings in 2018.

We also expect to deliver net loan book growth in the mid-teens in 2018 and NIM of c. 3%, reflecting current asset pricing and an expectation of a rising cost of funds after the end of TFS. We anticipate a cost to income ratio of c. 30% for 2018, reflecting the significant increase in the cost of regulation and planned investment in the business to support our growth strategy.

OneSavings Bank is well placed to take advantage of growth opportunities in 2018 and we remain confident in our ability to generate attractive returns for our shareholders."


Key metrics

2017 2016
Loan loss ratio5 (bps) 7 16
Statutory profit before tax (£m) 167.7 163.1
Total assets (£bn) 8.6 6.6
Statutory basic EPS9 (pence) 51.1 49.4
Loan to deposit ratio10 (%) 92 90
3 months + arrears11 (%) 1.2 1.4
Customer net promoter score +62 +59

Interims out this Thursday and will be interesting to see how OSB are doing.

The only bank I would invest in at the moment.

Interims:

http://www.moneyam.com/action/news/showArticle?id=6101970

34,000 shares sold by a relative http://www.moneyam.com/action/news/showArticle?id=6124003

Directors sell for tax liabilities http://www.moneyam.com/action/news/showArticle?id=6130715

Trading update https://www.moneyam.com/action/news/showArticle?id=6198912