Britain’s OSB Group raises full-year net loan book growth outlook

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May 3 (Reuters) – British lender OSB Group Plc (OSBO.L) on Wednesday raised its full-year outlook for underlying net loan book growth to 7% from about 5% earlier, aided by a rise in interest rates and a revival in demand for mortgage loans.

Lenders, who weathered the collapse of Silicon Valley Bank and the Signature Bank in March, are seeing a rise in their earnings, helped by successive rate hikes and a slight revival in the property market after a slowdown last year.

The company, which specialises in buy-to-let, commercial mortgages, and residential development finance, posted a 3% increase to 24.2 billion pounds ($30.22 billion) in its underlying net loans and advances for the first quarter.

“Whilst we remain mindful of the uncertain macroeconomic outlook, the growth so far this year and the current level of demand enable us to increase our full year guidance for underlying net loan book growth …,” Chief Executive Andy Golding said.

OSB Group also reported organic originations of 1.2 billion pounds in the quarter.

($1 = 0.8008 pounds)

Reporting by Sinchita Mitra and Eva Mathews in Bengaluru; Editing by Rashmi Aich

Our Standards: The Thomson Reuters Trust Principles.

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