OneSavings Bank (OSB) may be a newcomer - it floated in June - but the lender's half-year figures reveal rapid progress. Underlying profit increased fourfold to £29.7m year-on-year, reflecting the boost from last year’s acquisition of Northern Rock’s consumer loan book combined with strong organic growth.
Organic progress has been especially impressive. New lending at the buy-to-let and small and medium-sized business unit soared 160 per cent to £519m, and the residential mortgage book - OneSavings was formed from the purchase of Kent Reliance Building Society’s mortgage assets in 2013 - grew its organically originated loans by a quarter to £130m. Meanwhile, the Northern Rock deal has given higher-margin business a boost, and the net interest margin - the difference between what borrowers are charged and funding costs - jumped 121 basis points to 2.82 per cent.