Welcome to OneSavings Bank

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GET TO KNOW US

OUR BUSINESS

OneSavings Bank is made up of a family of specialist financial services businesses.

Kent Reliance and krbs are UK trading brands of OneSavings Bank plc. These brands maintain a link to our great history through Kent Reliance Building Society of financial products to the people of Kent for over 150 years and more recently the whole of the UK.
InterBay Commercial is a specialist commercial mortgage lender offering outstanding service and customer tailored solutions.
Prestige Finance is a specialist provider of secured loans. The company is now part of the OneSavings Bank plc group having been acquired in September 2012.
We have been providing residential and Buy to Let mortgage products to the people of Jersey since 2002.
Guernsey Home Loans is our subsidiary in Guernsey and has been providing residential and Buy to Let mortgage products to the island’s residents since 2005.
Reliance Property Loans administers books of mortgages acquired by OneSavings Bank plc, it does not provide new products to customers.
osbIndia is our wholly owned Indian subsidiary which provides back office support for the group's operations.
Heritable Development Finance is an established lender financing predominantly residential property developments for experienced property developers.

ABOUT US

INTRODUCTION

OneSavings Bank plc is a fast-growing specialist lender and retail savings group with a balance sheet of over £6bn.

The OneSavings Bank group is recognised as a specialist lender offering residential, buy to let and commercial mortgages, secured loans and development finance funded by a retail customer proposition based upon the provision of good value long and short term savings. OneSavings Bank operates through its market leading brands, Kent Reliance, InterBay Commercial, Prestige Finance and Heritable Development Finance. We enjoy long term relationships with our customers, delivering consistently high customer satisfaction scores, enabling us to maintain a strong retail funding base.

OneSavings Bank plc ('OSB') began trading as a bank on 1 February 2011 and was admitted to the main market of the London Stock Exchange in June 2014 (OSB.L). OSB joined the FTSE 250 index in June 2015 and is authorised by the Prudential Regulation Authority, part of the Bank of England, and regulated by the Financial Conduct Authority and Prudential Regulation Authority.

OSB primarily targets underserved market sub-sectors that offer high growth potential and attractive risk-adjusted returns in which it can take a leading position and where it has established expertise, platforms and capabilities. These include private rented sector Buy-to-Let, commercial and semi-commercial mortgages, residential development finance, bespoke and specialist residential lending and secured funding lines. OSB originates organically through specialist brokers and independent financial advisers. It is differentiated through its use of high skilled, bespoke underwriting and efficient operating model.

OSB is predominantly funded by retail savings originated through the long established Kent Reliance name, which includes online and postal channels, as well as a network of branches in the South East of England. Diversification of funding is currently provided by participation in the Funding for Lending Scheme and access to a securitisation programme.

OUR BOARD OF DIRECTORS

Andy Golding, Chief Executive Officer
Andy has over 25 years’ experience in financial services and has held senior positions at NatWest, John Charcol and Bradford & Bingley. Prior to joining OneSavings Bank he was the CEO of Saffron Building Society, where he had been since 2004. He holds a number of positions with industry institutions including membership of the Building Societies Association's Council and the Council of Mortgage Lenders Executive Committee. He is also a Director of the Building Societies Trust and has also served as a Non-Executive Director for Northamptonshire NHS. Andy is passionate about simplicity and fairness in financial services and is a published author on the subject of financial education.
April Talintyre, Chief Financial Officer
April Talintyre, joined OneSavings Bank as Finance Director in May 2012. Prior to joining the Bank she worked for Goldman Sachs International for over 16 years, most recently as an Executive Director in the Rothesay Life pensions insurance business and prior to that as an Executive Director in the Controllers division in London and New York. April began her career at KPMG in a general audit department. She has been a member of the Institute of Chartered Accountants in England and Wales since 1992.
Graham Allatt, Non-Executive Director
Graham joined OneSavings Bank in 2014. He is a senior commercial and retail banker who worked in credit and risk roles at a number of the UK’s major banks for 30 years including being Acting Group Credit Director at Lloyds TSB and Chief Credit Officer at Abbey National. Prior to this he spent 18 years in the NatWest Group culminating in the role of Managing Director, Credit Risk at NatWest Markets. A qualified Chartered Accountant, Graham is on the finance committee of the British Library and was involved in housing associations for nearly 30 years as Treasurer and Board member in the North of England and in London.
Eric Anstee, Non-Executive Director
Eric is a qualified accountant with over 40 years’ experience, including senior positions at Ernst and Young, Old Mutual Plc, being the first Chief Executive of the Institute of Chartered Accountants in England and Wales. He is a current member of the Takeover Panel Appeals Board and a former member of the Board of the Financial Reporting Council.
Andrew Doman, Non-Executive Director
Andrew is an experienced financial services executive. He was formerly CEO of Premium Credit Limited and Frank Russell Company. Previously he was a senior director of McKinsey & Company, management consultants, based in the London office. He focussed on the financial services sector, serving a number of leading banks, insurance companies and asset managers across a wide range of topics including strategy, performance improvement and risk. He was formerly a non-executive director of The Wesleyan.
Rod Duke, Interim Chairman and Senior Independent Director
Rod joined OneSavings Bank in 2012. He was formerly a Group General Manager, HSBC with responsibility for UK distribution - branches, call centres and internet banking - for both personal and commercial customers. Rod was with HSBC for 33 years and has extensive experience across retail and commercial banking. Previous directorships include VISA(UK), HFC Bank plc and HSBC Life. He also served on the board of Alliance & Leicester plc until its takeover by Santander. Rod is a Fellow of the Institute of Financial Services.
Tim Hanford, Non-Executive Director
Tim joined Kent Reliance in 2010. Tim is Managing Director of J.C. Flowers & Co. UK Ltd. Prior to his role at JCF, he was Head of Private Equity at Dresdner Bank and a member of the Institutional Restructuring Unit's Executive Committee. Tim has also served as a Board Director of Schroders, based in Hong Kong and Tokyo, where he was responsible for structured finance. He holds an MS from Stanford University's Graduate School of Business, where he was a Sloan Fellow and a BSc in Chemical Engineering from Birmingham University.
Margaret Hassall, Non-Executive Director
Margaret brings a broad range of experience developed across various industry sectors including manufacturing, utilities, and financial services. She spent 7 years working for Deloitte and Touche as a consultant and led the financial services consulting business for Charteris Plc. More latterly Margaret has been engaged as chief operations officer or chief information officer for divisions within some of the world's largest banks, namely Bank of America Merrill Lynch, Barclays and RBS. Margaret is a non-executive director for Ascension Trust (Scotland).
Mary McNamara, Non-Executive Director
Mary joined OneSavings Bank in 2014. She was CEO of the Commercial Division and Board Director of the Banking Division at Close Brothers Group PLC, responsible for the Asset, Invoice and Leasing businesses in the UK and overseas from 2010 to 2013. Mary spent a year as COO of Skandia, the European arm of Old Mutual Group and prior to that, 17 years at GE Capital, running a number of businesses including GE Fleet Services Europe and GE Equipment Finance. Mary is Chair of Governors of the Leasing Foundation.

OUR EXECUTIVE TEAM

Andy Golding, Chief Executive Officer
Andy has over 25 years’ experience in financial services and has held senior positions at NatWest, John Charcol and Bradford & Bingley. Prior to joining OneSavings Bank he was the CEO of Saffron Building Society, where he had been since 2004. He holds a number of positions with industry institutions including membership of the Building Societies Association's Council and the Council of Mortgage Lenders Executive Committee. He is also a Director of the Building Societies Trust and has also served as a Non-Executive Director for Northamptonshire NHS. Andy is passionate about simplicity and fairness in financial services and is a published author on the subject of financial education.
April Talintyre, Chief Financial Officer
April Talintyre joined OneSavings Bank as Finance Director in May 2012. Prior to joining the Bank she worked for Goldman Sachs International for over 16 years, most recently as an Executive Director in the Rothesay Life pensions insurance business and prior to that as an Executive Director in the Controllers division in London and New York. April began her career at KPMG in a general audit department. She has been a member of the Institute of Chartered Accountants in England and Wales since 1992.
Jason Elphick , Group Counsel and Company Secretary
Jason joined OneSavings Bank (OSB) in June 2016. Jason has over 20 years of legal private practice and in-house financial services experience. His private practice experience was primarily in Australia with King & Wood Mallesons and in New York with Sidley, and he has been admitted to practice in Australia, New York and England and Wales. His in-house financial services experience was most recently as Director and Head of Bank Legal at Santander in London. Prior to this Jason held various roles at National Australia Bank, including General Counsel Capital & Funding, Head of Governance, Company Secretary and General Counsel Product, Regulation and Resolution.
Jens Bech, Commercial Director
Jens joined OneSavings Bank from the Asset Protection Agency (APA), an executive arm of HM Treasury, where he held the position of Chief Risk Officer. Prior to the APA, Jens spent nearly a decade at management consultancy Oliver Wyman where he advised a global portfolio of financial services firms and supervisors on strategy and risk management. Jens led Oliver Wyman's support of Iceland during the financial crisis.
John Eastgate, Sales & Marketing Director
Despite graduating from university with an electrical engineering degree, John has spent his entire career in the financial services industry and now has over 20 years’ experience with banks, building societies and related consultancy partners. Prior to joining OneSavings Bank, John was Sales & Marketing Director at Saffron Building Society and he previously held senior roles at Experian and Barclays.
Clive Kornitzer, Group Chief Operating Officer
Clive has over 20 years of Financial Services Experience. Having worked at several financial organisations from Yorkshire Building Society, John Charcol and Bradford and Bingley prior to joining OneSavings Bank he spent six years at Santander where he was the Chief Operating Officer for their intermediary mortgage business. He has also held positions at EFMA and is the Chair of the FS Forums Retail Banking Sub Committee. He recently became a fellow of the Chartered Institute of Bankers.
Richard Davis, Chief Information Officer
Richard has worked for 20 years in Financial services rising to Chief Information Officer at GE Money UK in 2004. He subsequently helped launch MoneyPartners (an Investec subsidiary) as IT Director, through to the eventual sale to Goldman Sachs. Prior to joining One Savings Bank, Richard worked for 4 years at Morgan Stanley covering IT, Projects and Transaction Management for the European Residential business as an Interim Director.
Richard Wilson, Chief Credit Officer
Richard joined OneSavings Bank in January 2013. 2014 represents Richard's 25th year in financial services the first 18 of which were spent in a variety of credit and operations roles at the Yorkshire Building Society. Richard left the Yorkshire to head up the credit function for Morgan Stanley's UK origination business and subsequently looked after Credit and Collections strategy within their UK, Russian and Italian businesses.
Hasan Kazmi, Chief Risk Officer
Hasan joined OneSavings Bank in September 2015 as the Group Chief Risk Officer. Hasan has over 19 years of risk advisory and management experience having worked at several financial institutions, including Barclays Capital, Royal Bank of Canada and Standard Chartered Bank. Prior to joining OneSavings Bank he was a Senior Director within Deloitte’s Risk and Regulatory practice. Hasan graduated from the London School of Economics with a MSc in Systems Design and Analysis and a BSc in Management.
Lisa Odendaal, Head of Internal Audit
Lisa joined OneSavings Bank in April 2016 as Group Head of Internal Audit. Lisa has over 20 years of internal audit and operational experience gained in the UK, UAE and Switzerland having worked at several financial institutions, including PWC, Morgan Stanley, HSBC and Man Investments. Lisa joins us from Grant Thornton where she was an Associate Director within their Business Risk Services division.

OUR HISTORY

OneSavings Bank plc ('OSB') was formed in 2011 following the recapitalisation of the Kent Reliance Building Society by funds advised by J.C. Flowers & Co. LLC and is based in Chatham, Kent. The Group trades under the Kent Reliance, InterBay Commercial, Prestige Finance and Heritable Development Finance brands in the UK and under the Jersey Home Loans and Guernsey Home Loans brands in the Channel Islands.

OSB primarily targets underserved market sub-sectors that offer high growth potential and attractive risk-adjusted returns in which it can take a leading position and where it has established expertise, platforms and capabilities. These include private rented sector Buy-to-Let, commercial and semi-commercial mortgages, residential development finance, bespoke and specialist residential lending and secured funding lines. OSB originates organically through specialist brokers and independent financial advisers. It is differentiated through its use of high skilled, bespoke underwriting and efficient operating model.

OSB is predominantly funded by retail savings originated through the long established Kent Reliance name, which includes online and postal channels, as well as a network of branches in the South East of England. Diversification of funding is currently provided by participation in the Funding for Lending Scheme and access to a securitisation programme.

Whilst it is a new name, OneSavings Bank has over 150 years of heritage as Kent Reliance, which can trace its roots to 1847.

OSB was admitted to the main market of the London Stock Exchange in June 2014 (OSB.L). OSB joined the FTSE 250 index in June 2015 and is authorised by the Prudential Regulation Authority, part of the Bank of England, and regulated by the Financial Conduct Authority and Prudential Regulation Authority.



WOMEN IN FINANCE CHARTER

At OneSavings Bank we believe strongly in diversity and equality in our workforce. As such, in January 2017, we became a proud signatory of HM Treasury’s Women in Finance Charter; a voluntary commitment to work with the government to build towards gender equality at all levels of our organisation.

By becoming a signatory of the charter, we have pledged to be one of the best businesses in the sector in terms of gender equality.

Why was the Charter introduced?

The Women in Finance Charter was introduced as part of the Government’s aspiration to improve gender equality in the UK economy. As both the highest paid sector in the country and the sector in which the pay gap is the most stark, the financial services industry received its own review into the representation of women in senior management roles.

What does the charter require?

The charter:

  • Commits firms to supporting the progression of women into senior roles in the financial services sector by focusing on the executive pipeline and the mid-tier level;
  • Recognises the diversity of the sector and that firms will have different start points – each firm should therefore set its own targets and implement the right strategy for their organisation;
  • Requires firms to publicly report on progress to deliver against these internal targets supporting the transparency and accountability needed to drive change.

What has OneSavings Bank Pledged to Achieve?

We’re committed to increasing the representation of women undertaking senior positions within our organisation as we firmly believe that greater diversity strengthens the capabilities of our managers and positively impact our employees.

As such, Our target is that 30% of all Senior Management positions within the OneSavings Bank Group’s UK population will be undertaken by female employees by the end of 2020.

Alongside this target:

  • Jason Elphick, Group Counsel and Company Secretary, has been nominated as the senior executive who is responsible and accountable for gender diversity
  • We will publish progress annually against our target here on our website;
  • We will ensure the pay of our senior executive team is linked to delivery against our gender diversity target.

SLAVERY AND HUMAN TRAFFICKING STATEMENT

INTRODUCTION FROM THE CHIEF EXECUTIVE OFFICER

At OneSavings Bank (OSB) we have no tolerance for supporting modern slavery in any aspect of how we do business. We will not tolerate child or forced labour and are committed to the UN Declaration of Human Rights, the UN Guiding Principles of Business and Human Rights and International Labour Organisation Fundamental Conventions.

We are committed to addressing the requirements of the UK Modern Slavery Act 2015.

ORGANISATION'S STRUCTURE AND BUSINESS SUPPLY CHAINS

OSB is listed on the London Stock exchange and is a member of the FTSE 250. We are incorporated in the UK and headquartered in Kent. OneSavings Bank group is made up of a family of specialist financial services brands and subsidiaries, namely, Prestige Finance Limited, InterBay Commercial Limited and Heritable Development Finance Limited (together the Group), which primarily focused on carefully-selected sub-sectors of the mortgage market. Its specialist lending is supported by a stable retail savings franchise with 150 years of heritage. Also part of the group is the Bank’s overseas subsidiary, OSBIndia, based in Bangalore it provides primary processing for the Kent Reliance, Jersey and Guernsey brands.

Given the nature of the Group’s business, we believe there is a low risk of slavery or human trafficking having a connection with our business activities. However, there is no room for complacency in that belief and we have taken the following steps to guard against it.

OUR SUPPLY CHAINS AND OUTSOURCING ACTIVITY

We recently established a Group Vendor Management Outsourcing Policy to ensure a robust framework is followed to efficiently manage potential and contracted third party relationships and comply with regulatory obligations.

The Bank complies with Financial Conduct Authority rules in SYSC 8 ‘Outsourcing’. This requires us to:

  • take all reasonable steps to avoid undue additional operational risk; and
  • take all reasonable steps to ensure that a Service Provider has the ability, capacity and authorisation required by law to perform the outsourced functions, services or activities reliably and professionally.

RISK ASSESSMENT

In accordance with the obligation outlined above, all group contracts were reviewed in 2016 in order to categorise them according to their materiality. Following this review, we have also improved our due diligence checks, including in relation to anti-modern slavery. Our due diligence questionnaire now contains a specific question in regards to how the provider adheres to the Modern Slavery Act. Having reviewed the provisions of our material contracts we are satisfied that they would allow us to take appropriate action if any aspect of modern slavery was found to be taking place in any part of our business or supply chain.

We are developing our risk assessment process to allow us to assess and categorise new and existing vendors based on criteria including vendor type, categorisation of spend profile, geographical location and anti-slavery documentation.

RELEVANT EMPLOYMENT POLICIES

The policies we have in place reflect our commitment to:

  • acting ethically and with integrity in all our business relationships; and
  • implementing and enforcing effective systems and controls to ensure slavery and human trafficking is not taking place anywhere in our supply chains.

Relevant policies include Recruitment and Selection, Diversity and Equality (including references to pay and benefits) and Ethics. We have a comprehensive Whistleblowing Policy through which the Group encourages its employees and others who have serious concerns about wrongdoing or suspected wrongdoing in the workplace to come forward and voice those concerns.

OSBIndia is also an equal opportunity employer and fully committed to the equal treatment of its employees and job applicants. Its handbook contains a non-discrimination statement which states that the company will not discriminate against any employee or applicant on similar grounds to that in the United Kingdom, but also addressing discrimination highlighted in the modern slavery guidance including caste, national / provincial extraction and lawful political belief.

Due Diligence Process

The new Group Vendor Management Outsourcing Policy will ensure that a number of due diligence checks are undertaken and documented by Relationship Owners before we engage with suppliers and annually throughout the term of the engagement. Relationship Owners are required to make additional enquiries in the procurement processes for goods, services and locations where they are assessed as having a high risk of modern slavery and/ or human trafficking.

On-going monitoring of vendors includes the right to:

  • carry out an assessment of anti-slavery controls
  • check for any incident / compliance breaches

We are developing a Vendor Code of Conduct for Labour Standards which will set out the minimum standards with which we require our vendors to comply.

We are looking to build and improve our due diligence systems to better:

  • identify and monitor potential higher risk areas in our supply chain;
  • mitigate the risk of slavery and human trafficking in our supply chains through enhanced contract terms (to the extent appropriate and obtainable); and

where appropriate,

  • we will expect our direct suppliers to have suitable anti-slavery and human trafficking policies and processes either when entering into a new contract with a new supplier or renewing contracts with existing suppliers; and
  • Relationship Owners will communicate our expectations that those suppliers must prohibit modern slavery and human trafficking in the supply chain and that they should work with their suppliers at each stage in their supply chain to manage slavery and human trafficking risk.

TRAINING

To ensure group wide awareness of this issue we have rolled out training on modern slavery and human trafficking to all employees in the group. As at the date of publication 100% of our employees have taken the training. We will also provide training to educate relevant employees, including Relationship Owners, on the importance of implementing and enforcing effective systems to ensure slavery and human trafficking is not taking place within our business or suppliers.

OUR EFFECTIVENESS IN COMBATING SLAVERY AND HUMAN TRAFFICKING – PERFORMANCE INDICATORS

We are continuing to develop our understanding of the issues in order to minimise the risks involved in modern slavery. Policies, process and controls will be reviewed and we will monitor our supply chain to identify areas of high risk. During 2017/18 we will consider KPIs around training and vendor management to ensure the effectiveness of our approach to modern slavery.

This statement has been approved by the OSB Board and is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes our group's slavery and human trafficking statement for the financial year ending 31 December 2016. This statement will be reviewed and updated (if necessary) annually to reflect the group’s ongoing goal to ensure that our business and its supply chains are free from slavery and human trafficking.

Andy Golding

Andy Golding
Chief Executive Officer
ONESAVINGS BANK PLC
Date: 30 June 2017


INVESTOR RELATIONS

INTRODUCTION

With a balance sheet in excess of £6bn OneSavings Bank plc ('OSB') was admitted to the main market of the London Stock Exchange in June 2014 (OSB.L). OSB joined the FTSE 250 index in June 2015 and is authorised by the Prudential Regulation Authority, part of the Bank of England, and regulated by the Financial Conduct Authority and Prudential Regulation Authority.

OSB was formed in 2011 following the recapitalisation of the Kent Reliance Building Society by funds advised by J.C. Flowers & Co. LLC and is based in Chatham, Kent. The Group trades under the Kent Reliance, InterBay Commercial, Prestige Finance and Heritable Development Finance brands in the UK and under the Jersey Home Loans and Guernsey Home Loans brands in the Channel Islands.

OSB primarily targets underserved market sub-sectors that offer high growth potential and attractive risk-adjusted returns in which it can take a leading position and where it has established expertise, platforms and capabilities. These include private rented sector Buy-to-Let, commercial and semi-commercial mortgages, residential development finance, bespoke and specialist residential lending and secured funding lines. OSB originates organically through specialist brokers and independent financial advisers. It is differentiated through its use of high skilled, bespoke underwriting and efficient operating model.

OSB is predominantly funded by retail savings originated through the long established Kent Reliance name, which includes online and postal channels, as well as a network of branches in the South East of England. Diversification of funding is currently provided by participation in the Funding for Lending Scheme and access to a securitisation programme.

In addition to its main equity listing, OneSavings Bank has perpetual subordinated bonds listed on the London Stock Exchange.

SHARE PRICE

REPORT AND ACCOUNTS

OneSavings Bank plc ("OSB"), the specialist lending and retail savings group, announces its annual results for the year ended 31 December 2016.

Annual results for the year ended 31 December 2016:

Interim results for six months ended 30 June 2016:

Annual results for year ended 31 December 2015:

Financial highlights
  • Underlying profit before taxation1 up by 52% to £105.9m (2014: £69.7m)
  • Loans and advances grew by 31% in 2015 to £5.1bn (2014: £3.9bn), driven by gross organic origination of £1.8bn (2014: £1.5bn) and the purchase of a second charge mortgage portfolio for £260m
  • Cost:income ratio2 further reduced to 26% (2014: 28%), driven by strong income growth and continued focus on cost control and efficiency
  • Underlying return on equity3 increased to 32% (2014: 31%)
  • Underlying basic earnings per share4 up by 43% to 34.8 pence (2014: 24.4 pence)
  • Final dividend5 of 6.7 pence per share giving a full year dividend of 8.7 pence per share, in line with our target dividend policy
  • Fully-loaded Common Equity Tier 1 (CET1) capital ratio strengthened to 11.6% (2014: 11.4%)
Key Metrics
2015 2014
Net Interest Margin6 (bps) 309 291
Statutory Profit before Tax (£m) 105.3 63.7
Total Assets (£bn) 6.0 4.9
Statutory basic EPS7 (pence) 34.1 21.7
Loan to deposit ratio8 (%) 93 90
3 Months+ Arrears9 (%) 2.1 2.3
Loan loss ratio10 (bps) 23 33
Customer Net Promoter Score (%) 54.8 38.9
  1. Before exceptional IPO expenses of £2.1m in 2015 (2014: £7.4m) and after deduction of coupons on equity Perpetual Subordinated Bonds (PSBs) of £1.5m in each period
  2. Administrative expenses including depreciation and amortisation as a percentage of total income after deducting coupons on equity PSBs
  3. Underlying profit after taxation (profit after taxation excluding exceptional IPO expenses, including the tax effect, of £1.6m (2014: £6.4m) and after deducting coupons on equity PSBs including the tax effect, of £1.2m (2014: £1.1m)) as a percentage of average shareholders’ equity (excluding equity PSBs of £22m)
  4. Underlying profit after taxation divided by the weighted average number of ordinary shares in issue
  5. Representing 25% of underlying profit after tax. To be paid on 18 May 2016, subject to approval at the Annual General Meeting on 11 May 2016, with a record date of 29 March 2016. For 2014, the dividend of 3.9p per share represented a final two-thirds dividend
  6. Net interest income, less coupons on PSBs classified as equity, as a percentage of average interest bearing assets including off balance sheet Funding for Lending Scheme (FLS) drawings
  7. Statutory profit after taxation divided by the weighted average number of ordinary shares in issue
  8. Excluding the impact of the Funding for Lending Scheme
  9. Portfolio arrears rate (excluding legacy problem loan book) of accounts for which there are missed or overdue payments by more than three months
  10. Impairment losses expressed as a percentage of average gross loans and advances

Interim results for six months ended 30 June 2015:

Financial highlights
  • Underlying profit before taxation1increased 60% to £47.6m (1H 2014: £29.7m)
  • Loans and advances grew by 17% in the first half of 2015 to £4.6bn (FY 2014: £3.9bn) driven by gross organic origination of £778m (1H 2014: £649m ) and the purchase of a second charge mortgage portfolio for £260m in March
  • Continued focus on cost control and strong income growth drove further reduction in the cost: income ratio2 to 26% (1H 2014: 29%)
  • Underlying return on equity3 increased to 31% (1H 2014: 30%)
  • Interim dividend of 2.0p per share (1/3 of annualised 2014 dividend)4
  • Fully-loaded Common equity tier 1 capital ratio at 11.0% (1H2014: 11.0%, FY 2014: 11.4%)
Key Metrics
H1 2015 H1 2014
Net Interest Margin5 (bps) 305 282
Statutory Profit before Tax (£m) 46.6 24.8
Total Assets (£bn) 5.2 4.2
Basic EPS6 (pence) 15.0 8.8
Underlying basic EPS7 (pence) 15.5 11.0
Loan to deposit ratio (%) 99 94
3 Months+ Arrears8 (%) 2.4 2.6
Loan loss ratio9 (bps) 23 29
Customer Net Promoter Score (%) 50.4 33.5
  1. Before exceptional IPO expenses of £1.7m in first half 2015 (1H 2014: £5.6m) and after deduction of coupons on equity perpetual subordinated bonds (‘PSB's’) of £0.7m in each period
  2. Administrative expenses as a percentage of total income after deduction of coupons on equity PSB's
  3. Underlying profit after taxation (profit after taxation excluding exceptional IPO expenses, including the tax effect, of £1.4m in first half 2015 (1H 2014: £4.9m) and after deducting coupons on equity PSB's of £0.6m (after tax) in each period) as a percentage of average shareholders' equity (excluding equity PSB's of £22m) on an annualised basis
  4. The proposed interim dividend of 2.0 pence per share for first half 2015, is based on one third of the annualised 2014 final dividend of 5.9 pence per share (2014 final two-thirds dividend: 3.9 pence per share)
  5. Net interest income, less coupons on PSB's classified as equity, as a percentage of average interest bearing assets, on an annualised basis
  6. First half 2014 basic EPS were previously reported as 9.2 pence per share before deduction of coupons on equity PSB’s
  7. Underlying profit after taxation divided by the weighted average number of ordinary shares in issue
  8. Portfolio arrears rate (excluding legacy problem loan book) of accounts for which there are missing or overdue payments by more than three months
  9. Impairment losses expressed as a percentage of average gross loans and advances

Annual results for year ended 31 December 2014:

Financial highlights
  • Underlying profit before taxation1 more than doubled to £69.7m (2013: £30.0m)
  • Loans and advances grew by 29% in 2014 to £3.9bn (2013: £3.0bn), with total assets now at £4.9bn, driven predominantly by £1.5bn in new business origination (2013: £794m)
  • Strong income growth and continued focus on cost control drove significant reduction in cost:income ratio2 to 28% (2013: 38%)
  • Underlying return on equity3 up over 9 percentage points to 31% (2013: 22%) on a higher equity base
  • Declaration of a maiden final dividend4 of 3.9 pence per share in respect of 2014 and in line with our target dividend policy
  • Fully-loaded Common Equity Tier 1 (CET1) capital ratio5 strengthened to 11.4% (2013: 8.4%)
Key Metrics
2014 2013
Net Interest Margin6 (bps) 291 211
Statutory Profit before Tax (£m) 63.7 31.4
Total Assets (£bn) 4.9 3.8
Underlying basic EPS7 (pence) 24.4 13.4
Loan to deposit ratio (%) 90 93
3 Months+ Arrears8 (%) 2.3 2.9
Loan loss ratio9 (bps) 33 28
Customer Net Promoter Score (%) 38.9 32.4
  1. Before exceptional IPO expenses of £7.4m in 2014 and after deduction of coupons on equity Perpetual Subordinated Bonds (PSB’s) of £1.5m in each period
  2. Administrative expenses including depreciation and amortisation as a percentage of total income after deducting coupons on equity PSB’s
  3. Underlying profit after taxation (profit after taxation excluding exceptional IPO expenses, including the tax effect, of £6.4m in 2014 and after deducting coupons on equity PSB’s of £1.1m (after tax) in 2014 and £1.5m in 2013) as a percentage of average shareholders’ equity (excluding equity PSB’s of £22m)
  4. To be paid on 5 June 2015, subject to approval at the Annual General Meeting on 2 June 2015, with a record date of 15 May 2015
  5. Under Basel III CRDIV with 31 December 2013 estimated
  6. Net interest income, less coupons on equity PSB’s as a percentage of average interest bearing assets
  7. Underlying profit after taxation divided by the weighted average number of ordinary shares in issue
  8. Portfolio arrears rate (excluding legacy problem loan book) of accounts for which there are missed or overdue payments by more than three months
  9. Impairment losses expressed as a percentage of average gross loans and advances

REGULATORY NEWS

BOND INVESTORS

Our treasury activities include securitisation, Additional Tier 1 Securities and Perpetual Subordinated Bonds (PSBs).

ADDITIONAL TIER 1 SECURITIES
Additional Tier 1 securities
View and download all transaction documentation
  

SECURITISATION SECURITISATION
Rochester Financing No. 1 plc
Transaction Documents
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Rochester Financing No. 2 plc
Transaction Documents
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SECURITISATION SECURITISATION
Rochester Financing No. 1 plc
Cash Flow Modelling
A user guide for scenario generation, which is required in the model, can also be found in the Global ABS Portal

Please note that you must be registered with the Global ABS Portal in order to use the cash flow functionality.

Rochester Financing No. 2 plc
Cash Flow Modelling
The cash flow model is available for download.

PERPETUAL SUBORDINATED BONDS SECURITISATION
We have issued the following bonds:

• 7.875% Perpetual Subordinated Bonds
• 6.591% Perpetual Subordinated Bonds

Our registrars are Equiniti
Download the Bond Prospectus
Investor Reporting
Investor reports and loan level data in relation to Rochester Financing No. 1 plc and Rochester Financing No. 2 plc are held with the
US Bank Trust Gateway Portal
Investor reports, loan level data and cash-flow modelling relating to the Bank of England’s Discount Window Facility requirements can be found on the
Euro ABS portal

ONESAVINGS BANK PLC - INITIAL PUBLIC OFFERING

These materials are not directed at or accessible by persons in the United States, Australia, Canada or Japan.

This is an advertisement and not a prospectus. If OneSavings Bank undertakes a flotation in the future, a prospectus will be produced and made available on osb.co.uk. Any decision to apply for shares in OneSavings Bank should be based on that prospectus.

For regulatory purposes, please answer the following question.


PILLAR 3 AND CRDIV COUNTRY BY COUNTRY (‘CBCR’) DISCLOSURE

SHAREHOLDER INFORMATION

Annual General Meeting

2017

The Annual General Meeting of OneSavings Bank plc was held on 10 May 2017 at 11 am at the offices of Addleshaw Goddard LLP, Milton Gate, 60 Chiswell Street, London EC1Y 4AG.

Download the Notice of Meeting Document Results of 2017 Annual General Meeting held on Wednesday 10 May 2017

 

2016

Download the Notice of Meeting Document View additional disclosure to 2015 Remuneration report Results of 2016 Annual General Meeting held on Wednesday 11 May 2016

 

2015

Download the Notice of Meeting Document Results of 2015 Annual General Meeting held on Tuesday 2 June 2015

 

Financial Events Calendar

Date Event
16 March 2017 Full Year Preliminary Results
03 May 2017 Q1 Trading Update
10 May 2017 Annual General Meeting
24 August 2017 Half Year Interim Results
8 November 2017 Q3 Trading Update

REGISTRARS



Registrar - address for shareholder communications
Please address all questions and communication to:
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA

Phone: Registration queries - 0871-384-2701
(calls to this number cost 8 pence per minute plus network charges)
Caller from outside the UK please use - +44 121-415-7047

Lines are open from 8.30am to 5.30pm (UK time), Monday to Friday - excluding Bank Holidays.

CORPORATE GOVERNANCE

OneSavings Bank strives for the highest standards of corporate governance and complies with the UK Code on Corporate Governance.

The Board operates within written terms of reference. It has appointed and authorised a number of committees to manage aspects of the Group’s affairs. Each committee operates within an established written terms of reference each committee reports directly to the Board. Download the terms of reference from the links below

Download the Corporate Governance review Download the Terms of reference and Matters reserved for the board-March 2017 Download the Nominations & Governance Committee Terms of reference March 2017 Download the Remuneration Committee Terms of reference March 2017 Download the Risk Committee Terms of reference July 2017 Download the Audit Committee Terms of reference July 2017

Remuneration Policy

Download the OneSavings bank Remuneration Policy report 2015 S430(2B)





NEWS CENTRE

RIS Announcement 14th July 2014
OneSavings Bank plc: Perpetual Subordinated Bonds - Interest Rate Reset
RIS Announcement 14th July 2014
OneSavings Bank plc: Perpetual Subordinated Bonds - Interest Rate Reset
RIS Announcement 14th July 2014
OneSavings Bank plc: TR-1 Notification of Major Interest in Shares
RIS Announcement 8th July 2014
OneSavings Bank plc: TR-1: Notification of Major Interest in Shares
RIS Announcement 7th July 2014
OneSavings Bank plc: Post Stabilisation Notice
RIS Announcement 27th June 2014
OneSavings Bank plc: Directors Dealings
RIS Announcement 24th June 2014
OneSavings Bank plc: Appointment of Corporate Brokers
RIS Announcement 12th June 2014
OneSavings Bank plc: TR-1: Notification of Major Interest in Shares
RIS Announcement 11th June 2014
OneSavings Bank plc: TR-1: Notification of Major Interest in Shares
RIS Announcement 10th June 2014
OneSavings Bank plc: Admission to trading on the London Stock Exchange
RIS Announcement 5th June 2014
OneSavings Bank plc: Publication of Prospectus
5th June 2014
OneSavings Bank plc: Prospectus
RIS announcement 5th June 2014
OneSavings Bank plc: Announcement of Offer Price
RIS announcement 5th June 2014
OneSavings Bank plc: Pre-Stabilisation Notice
RIS announcement 19th May 2014
OneSavings Bank plc: Changes to share capital and constitution
RIS announcement 15th May 2014
OneSavings Bank plc: Announces appointment of Non-Executive Director
RIS announcement 14th May 2014
OneSavings Bank plc: Appointment of two independent Non-Executive Directors
RIS announcement 7 May 2014
OneSavings Bank plc: Announcement of Intention to Float on the London Stock Exchange
RIS announcement 2 May 2014
OneSavings Bank plc: Amendment to Articles
RIS announcement 2 May 2014
OneSavings Bank plc: Retirement of Directors
RIS announcement 28 April 2014
OneSavings Bank plc: Regulatory consent to Change of Control
RIS announcement 1 April 2014
OneSavings Bank plc: Appointment of Chairman
RIS announcement 31 March 2014
OneSavings Bank plc: Amendment to Articles
RIS announcement 14 March 2014
OneSavings Bank plc: Final Results for the 12 Months Period ended 31 December 2013
RIS announcement 16 August 2013
OneSavings Bank plc: Interim group results for the six months ended 30 June 2013
RIS announcement 26 March 2013
OneSavings Bank plc: Final results for the 12 months period ended 31 December 2012
RIS announcement 29 August 2012
OneSavings Bank plc: Interim group results for the six months ended 30 June 2012
RIS announcement 28 March 2012
OneSavings Bank Plc: Final results for the 11 months period ended 31 December 2011
RIS announcement 31 August 2011
OneSavings Bank plc: Interim results for the period ended 30 June 2011 and Capital Injection by B Shareholder
Load more articles
 

CORPORATE REPONSIBILITY

How our customers feel about the Group is something the Board takes seriously. The Kent Reliance Provident Society plays an important role for the Group, acting as the eyes, ears and voice of the Bank’s customers and helping us to shape our product and service offering in a way that meets the needs of both savers and borrow

We track a number of customer satisfaction metrics including our Net Promoter Scores to understand how well we are doing and help identify areas for change. This is currently greater than 30%.

The Banking Group makes charitable donations to community groups including supporting grass roots football through the Kent Football Association, the Demelza Hospice and campaigns in Kent, its head office region. The Bank has also continued its support for Great Ormond Street Children’s Hospital, through a co-branded savings offering under which the Bank has made commission payments to the hospital in excess of £50,000 over the past two years. These things are important and help connect a business to the community.



CONTACT US
Main Switchboard 01634 848944

Kent Reliance Customers visit
Reliance Property Loans customers visit

For Investor Relations
By phone 01634 838973
By post
OneSavings Bank, Reliance House Sun Pier, Chatham, ME4 4ET
CAREERS

At OneSavings Bank we are constantly on the look-out for bright and ambitious people looking for worthwhile careers at various locations in Kent, London and overseas.

On LinkedIn you can find some of our careers opportunities available within the group.

Terms & conditions Cookies
OneSavings Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (registered number 530504). We subscribe to the Financial Services Compensation Scheme and the Financial Ombudsman Service.