OneSavings Bank sees profits jump

The bank increased its residential mortgage lending by 26% in the six months to June 30th, reaching £130m advanced, and says its first charge residential lending has been particularly strong in London and the South East.

In its half-year results, published today, OneSavings Bank says it was well placed to “take advantage of the disruption in the direct lending portion of the residential mortgage market following the Mortgage Market Review”, as it mainly lends through brokers.

The lender set aside £2.7m in regulatory provisions for the first half of the year, up from £2.1m at the same point last year.  The bank says this mainly relates to levies for the Financial Services Compensation Scheme.

Mike Fairey, Chairman of OneSavings Bank, said:

“OneSavings Bank has made a strong start in its life as a listed company. The successful completion of the IPO in June this year is a great tribute to the hard work of the executive management team and staff across the business over the last three and a half years in creating a unique retail funded specialist lending business. I am delighted to have joined as Chairman to support OneSavings Bank’s future development and growth as a publicly listed company.”

Andy Golding, CEO of OneSavings Bank, said:

"These results show the strength and opportunity in the business we have created. Our return on equity of 30% is a number of which we are particularly proud and this has been delivered at a time when we have also delivered a significant growth in lending.  Underpinned by our strong retail funding base, the profitable lending growth, significantly improved efficiency and continued low level of impairments have all combined to drive a significant uplift in our earnings and returns. We have demonstrated our ability to deliver on the commitments we have made to our new shareholders and thank our staff for all their support during what has been a very busy period.”