OSB Group (LON:OSB) Releases Earnings Results

OSB Group (LON:OSB) issued its quarterly earnings data on Thursday. The company reported GBX 75.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. OSB Group had a net margin of 42.75% and a return on equity of 12.35%.

Here are the key takeaways from OSB Group’s conference call:

• The group delivered on its 2025 guidance with profit before tax of £383m, ROTE of 13.7%, TNAV up to £5.79, a 5% dividend increase and a further £100m share buyback announced for 2026.
• Net interest income fell 2% and NIM was down modestly; 2026 NIM guidance of circa 225 bps is explicitly conditional on elevated funding costs normalizing, so margins are at risk if funding remains expensive.
• The tech transformation is on track and on budget — >40% of mortgage applications are on the new platform with much faster turnarounds (AIP <10 minutes, some offers <2 hours), expected to drive efficiency and improved distribution.
• Lending growth was modest (net loans +3.2%) but originations rose 19% and originations in higher?yielding sub?segments increased 53%, shifting the book mix (higher?yielding now 12% vs 9%); credit metrics remain stable (3?month+ arrears 1.7%, ECL £123.6m).
• Capital is strong (CET1 15.8% after buybacks, 16.6% pre?buyback) with a new board CET1 target of 13–13.5% to enable returns, though Basel III.1 RWA uplifts (~9%) are expected to reduce CET1 by ~1.3% and will influence the glide path.

OSB Group Stock Up 2.0%

OSB Group stock traded up GBX 11.60 during mid-day trading on Thursday, reaching GBX 579.10. 1,009,910 shares of the company’s stock were exchanged, compared to its average volume of 3,596,582. The company has a market cap of £2.05 billion, a P/E ratio of 8.42 and a beta of 1.08. OSB Group has a twelve month low of GBX 360.60 and a twelve month high of GBX 647.50. The company has a fifty day moving average of GBX 617.17 and a 200-day moving average of GBX 578.67.

Analysts Set New Price Targets

OSB has been the topic of a number of research analyst reports. Peel Hunt reissued a “hold” rating and issued a GBX 564 price target on shares of OSB Group in a research note on Thursday, November 13th. Shore Capital Group reiterated a “buy” rating and issued a GBX 665 target price on shares of OSB Group in a report on Friday, December 19th. Finally, Deutsche Bank Aktiengesellschaft cut OSB Group to a “hold” rating and upped their price target for the stock from GBX 650 to GBX 660 in a research note on Friday, January 23rd. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 631.

OSB Group Company Profile

OSB Group Plc, through its subsidiaries, operates as a specialist mortgage lending and retail savings company in the United Kingdom and the Channel Islands. It provides private rented sector related buy-to-let, commercial and semi-commercial mortgages, residential development finance, secured funding, bridging, and asset finance services. The company also provides buy-to-let and specialist residential mortgages, mortgage servicing, administration and analytical, mortgage originator and servicer, and retail savings products; and back office processing services.