OSB Group PLC

F:2UK

Resilient half: OSB said first-half performance was resilient despite a tougher macro backdrop, with profit before tax of GBP 187 million, RoTE of 13.3%, and TNAV per share rising to 584p from 579p at year-end.

NIM pressure: Net interest margin fell to 223 basis points, and management cut full-year 2026 NIM guidance to 215 to 220 basis points from 225 because retail deposit costs have stayed more volatile and competitive than expected.

Higher funding costs: Management said it sees no sign retail funding costs will normalize this year, and deposit competition was described as intense, with several factors temporarily pressuring funding and margins.

Transformation progress: The new platform is improving speed, automation, and pricing flexibility, and management said the program remains on track with costs in line with plan and benefits expected to build further into 2027 and beyond.

Capital returns: OSB increased the interim dividend by 5% and has repurchased about GBP 69 million of its GBP 100 million buyback program, taking total shareholder distributions over the last 18 months to GBP 360 million.

Medium-term confidence: Even after trimming 2026 guidance, management kept its 2028 and 2029 mid-teens RoTE ambitions intact, pointing to back-book roll-off, MREL benefits, diversification, and transformation gains as key drivers.