OSB Group (LON: OSB), the specialist lender behind the Kent Reliance and Charter Savings Bank brands, said today that its nine months to the 30th of September were in line with 2026 guidance. It also announced a tender offer, an offer to buy back bonds early, for two of its parent-company bond issues.
The update came at 7am. In delayed data at 08:48 UK time, the FTSE 250 member’s shares were up 5.6%, at 524.8p against a previous close of 497.2p.
The net loan book grew 1.9% to £26,423.2m from £25,920.6m at the 31st of December 2025. Originations, meaning new loans written, rose 4% to £3.5bn, from £3.4bn a year earlier. Buy-to-let and residential lending were strong, while higher-yielding sub-segments declined modestly because of macroeconomic uncertainty and elevated mortgage rates.
| Metric | 30 Sept 2026 / 9M 2026 | Comparator (31 Dec 2025 unless stated) | Change as stated |
|---|---|---|---|
| Net loan book (£m) | 26,423.2 | 25,920.6 | 1.9% |
| Retail deposits (£m) | 24,986.8 | 24,251.1 | 3.0% |
| CET1 ratio | 15.4% | 15.8% | (40)bps |
| 3 months+ arrears | 1.6% | 1.7% | (10)bps |
| Central bank facilities | £656.8m | £1.5bn | Not stated |
Retail deposits rose while central bank facilities fell, even with £400m drawn in the third quarter. The CET1 ratio, the core capital held against risk-weighted assets, is stated after the £100m share buyback announced in March, which is now complete. OSB says it has repurchased £550m of shares since 2022.
The tender offer covers £300m of 9.5% securities due in September 2028 and £400m of 8.875% securities due in January 2030. The Bank of England’s preferred resolution strategy for OSB changed to Transfer from the 1st of January, so its MREL, the minimum loss-absorbing debt requirement, equals its minimum capital requirements and these securities are no longer required for it. Terms are in a separate announcement. Chief executive Enrique Alvarez Labiano said:
This is an attractive transaction for the Group and its shareholders and is expected to provide positive financial benefit out to 2029.
Enrique Alvarez Labiano, chief executive
New capital rules, Basel 3.1, start on the 1st of January 2027. OSB expects them to reduce its CET1 ratio as at the 30th of June 2026 by 1.2%, because risk-weighted assets rise 9%. Pillar 2A, a bank-specific extra capital requirement, is expected to fall 55bps, and minimum capital requirements to go from 9.5% to 8.9%.
Alvarez Labiano said greater clarity next year will let the company review its capital needs, capital target and 2027 shareholder distributions. An investor update is planned for the first half of 2027.