OSB Group (LSE:OSB) shares notched up 4%, to 526p, on Thursday after its Q1 performance update, which the group described as resilient and said it continues to operate broadly in line with its 2026 guidance.
The Group's net loan book increased 0.9% (£233m) in Q1 supported by an 11% rise in originations to £1.2bn (Q1 2025: £1.1bn), with good growth in Buy-to-Let and Residential and continued gains in higher‑yielding sub‑segments.
Retail deposits rose 1.8% (£447m) and the Group repaid £350m of ILTR drawings leaving an outstanding balance of £1.15bn at 31 March, while total assets fell as management optimised the liquidity portfolio.
Three months plus arrears remained at 1.7% and IFRS 9 ECL modelled provisions increased marginally to reflect updated macroeconomic scenarios.
The CET1 ratio held at a robust 15.1% after the £100m share repurchase programme announced in March, with £30.2m repurchased as at market close on 28 April, and RWAs grew 0.6% versus a 0.9% increase in the net loan book.
"The Group delivered a resilient financial performance in the first quarter of 2026 and we continue to operate broadly in line with our 2026 guidance," Andy Golding, CEO, said.
Management said it managed rapid swap‑rate movements by repricing products to protect margins, reiterated 2026 NIM guidance at circa 225bps which is partially dependent on retail funding normalising, and confirmed transformation milestones including a Q3 launch of Residential on the new lending platform.
The Group's summary guidance remains: loan book growth broadly similar to 2025, net interest margin circa 225bps, and a dividend per share target of a 5% increase from 2025, and the £100m share repurchase programme is due to complete no later than 6 March 2027.
