OneSavings Bank posts 29 per cent profit surge after strong loan growth

OneSavings Bank posts 29% profit surge after strong loan growth

OneSavings Bank has posted a 29% rise in underlying profits for 2016 amid a surge in new lending.

The bank reported underlying profits before taxation of £137m for the year ended 31st December 2016, up from £105.9m in the previous year.

This was accompanied by a 28% rise in gross originations to £2.3bn, while net loans and advances also grew by 16% last year to £5.9bn.

Andy Golding, CEO of OneSavings Bank, said: "I am delighted to report that OneSavings Bank has delivered another year of strong performance in 2016.

“We have once again met or exceeded all of the financial objectives we set at IPO despite a number of regulatory and tax changes.

“This was another period of strong loan book growth through our specialist lending brands, demonstrating the strength of our organic lending franchise.”

OneSavings Bank provided four new funding lines last year for lenders operating in specialist areas such as residential bridging and asset finance, with two further credit lines approved and in the documentation process.

The bank also reported strong growth in its core buy-to-let (BTL) lending, partly driven by a rush to avoid the increase in stamp duty land tax in April 2016.

The bank’s BTL lending surged again in the last quarter of 2016 ahead of the introduction of new underwriting standards in January of this year.

Professional or multi-property landlords accounted for 68% of completions for OneSavings Bank by value during the second half of the year.

“Following this strong performance in 2016, we entered 2017 with a strong pipeline of new business and are seeing very strong application levels in our core businesses,” added Andy.

“OneSavings Bank is well placed to take advantage of opportunities in our core businesses in 2017 and we remain confident in our ability to generate attractive returns for our shareholders.”

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