The OSB Board has declared an interim dividend of 10.7 pence per share for the first half of 2024, based on the full year 2023 dividend of 32.0 pence per share.
The declared dividend will be paid on 20 September 2024, with an ex-dividend date of 22 August 2024 and a record date of 23 August 2024.
Other financial highlights include:
Underlying profit before tax increased to £249.9m (H1 2023: £116.6m) and statutory profit before tax was £241.3m (H1 2023: £76.7m) primarily due to non-recurrence of the H1 2023 adverse EIR adjustment partially offset by lower prevailing spreads from mortgages and deposits and an impairment credit compared to a loss in the prior period
Underlying return on equity increased to 18% (H1 2023: 8%) and statutory return on equity was 17% (H1 2023: 5%)
Underlying and statutory net loan book grew by 1.5% and 1.4% to £26.1bn in the period (FY 2023: £25.7bn and £25.8bn, respectively) and originations were £1.9bn (H1 2023: £2.3bn) as the Group maintained pricing discipline and a focus on returns
Underlying and statutory net interest margin (NIM) increased to 243bps and 237bps (H1 2023: 203bps and 171bps, respectively) largely due to non-recurrence of the adverse EIR adjustment partially offset by maturing fixed term mortgages redeeming or switching onto lower prevailing spreads, continued recycling of the fixed rate deposit book and MREL issuance
Underlying and statutory cost to income ratios4 improved to 34% and 35% (H1 2023: 40% and 47%, respectively)
Underlying and statutory loan loss ratios were (4)bps (H1 2023: 37bps) due to updated macroeconomic scenarios, particularly house price improvement. Arrears balances greater than three months increased to 1.6% (31 December 2023: 1.4%)
Basic earnings per share were 46.0p and 44.4p on an underlying and statutory basis (H1 2023: 19.5p and 12.8p, respectively)
The Common Equity Tier 1 capital ratio, which includes the full impact of the £50m share repurchase programme announced in March, remained strong at 16.2% (31 December 2023: 16.1%). As at 14 August, the Group had repurchased £39.0m worth of shares under the programme
The Group met its interim MREL requirement of 22.5% of risk-weighted assets, including regulatory buffers, under the current standardised rules
