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(Alliance News) - Shares jumped in OSB Group PLC on Thursday after the mortgage specialist posted an increase in annual profit and pledged a £100 million share buyback programme.
Shares in OSB were up 13% at 538.30 pence in London on Thursday morning.
Net interest income for 2021 grew 24% to £587.6 million from £472.2 million in 2020, with total income rising 24% to £629.0 million from £508.6 million.
Pretax profit surged 78% to £464.6 million from £260.4 million.
The company said demand for mortgages remained strong in 2021 and noted a ‘particularly active’ property purchase market, boosted by the stamp duty holiday.
The underlying net loan book increased by 10% to £20.9 billion, and OSB expects further growth of 10% in 2022. The underlying net interest margin for 2022 is expected broadly flat on 2021's 282 basis points, which in turn was up from 247 basis points in 2020.
OSB will pay a dividend of 26.00 pence for 2021, up 79% on the 14.5p paid out for 2020. On top of this, it will start a share buyback programme worth £100 million.
‘Recent geopolitical events, driving further inflationary pressure, do create additional uncertainty over the macroeconomic outlook. The group has a proven track record of delivering strong results as a listed business and we have consistently demonstrated our resilience. The solid foundations of our business allow us face the future with optimism,’ said Chief Executive Andy Golding.
By Lucy Heming; lucyheming@alliancenews.com
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