OSB Group Reports Resilient H1 2026 Amid Funding Pressures
Event summary
- Net loan book grew 1.3% to £26.3bn, supported by 10% origination growth.
- Net interest margin narrowed to 223bps from 230bps due to higher funding costs.
- RoTE declined to 13.3% from 13.7%, with guidance revised down to ~12.5% for 2026.
- Andy Golding steps down as CEO, succeeded by Enrique Alvarez Labiano on September 1, 2026.
The big picture
OSB Group's H1 2026 results reflect the dual challenge of macroeconomic volatility and competitive retail funding markets. The group maintained loan growth but faced margin compression, highlighting the pressure on UK specialist lenders to balance yield and risk in a rising-rate environment. Leadership transition adds another layer of strategic uncertainty as the new CEO inherits a transformation agenda with mid-term RoTE aspirations now clouded by near-term cost pressures.
What we're watching
- Funding Cost Pressures
- Whether OSB can sustain margins if elevated funding costs persist beyond 2026.
- Loan Book Diversification
- The pace at which the group reduces Buy-to-Let exposure below 60% of net loans.
- Transformation Programme
- How quickly new lending and savings platforms drive operational efficiency gains.
Related topics