Securitisation of Buy-to-Let mortgages and disposal of junior
economic interest in PMF 2024-2 plc
THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION
LEI: 213800ZBKL9BHSL2K459
OSB GROUP PLC
Securitisation of Buy-to-Let mortgages and disposal of
junior economic interest in PMF 2024-2 plc
OSB GROUP PLC (“Group”) today announces that its subsidiary
Charter Court Financial Services Limited has priced a
securitisation, PMF 2024-2 plc, of c. £1.25bn of Buy-to-Let
mortgages, which is expected to complete on or around 12 December
2024. The Group has also agreed to sell its junior economic
interest in the transaction.
The transaction, once complete, is expected to result in the
de-recognition of the underlying mortgages from the Group’s balance
sheet and a corresponding reduction in gross loans. On this basis,
the transaction is expected to be broadly neutral for the Group’s
2024 financial results and would, on a pro-forma basis, have
increased the Group’s CET1 ratio by 0.6 ppt at 30 June 2024. BofA
Securities have been mandated as sole arranger and lead manager for
the transaction.
Andy Golding, CEO of OSB GROUP PLC, said:
“I am pleased that OSB has undertaken its 26th
securitisation of mortgage assets and the third of 2024,
demonstrating our continued ability to originate quality loan
portfolios and expertise in executing structured balance sheet
optimisation transactions. This securitisation and disposal of the
junior economic interest in the transaction is expected to reduce
the potential impact from changes in customer behaviour in the
reversion period. Funds will be used to support the repayment of
drawings under the Bank of England’s Term Funding Scheme for SMEs
(TFSME).”
Enquiries:
OSB GROUP PLC
Alastair Pate, Investor
Relations t: 01634
838 973
Brunswick Group
Robin Wrench / Simone
Selzer t: 020 7404
5959
About OSB GROUP PLC
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. On 4 October 2019, OSB acquired Charter Court Financial
Services Group plc (CCFS) and its subsidiary businesses. On 30
November 2020, OSB GROUP PLC became the listed entity and holding
company for the OSB Group. The Group provides specialist lending
and retail savings 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.
The Group reports under two segments, OneSavings Bank and Charter
Court Financial Services.
OneSavings Bank (OSB)
OSB primarily targets 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,
secured funding lines and asset finance.
OSB originates mortgages via specialist brokers and independent
financial advisers through its specialist brands including Kent
Reliance for Intermediaries and InterBay Commercial. It is
differentiated through its use of highly 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 as
well as a network of branches in the Southeast of England.
Diversification of funding is currently provided by securitisation
programmes and the Bank of England’s Term Funding Scheme with
additional incentives for SMEs.
Charter Court Financial Services Group
(CCFS)
CCFS focuses on providing Buy-to-Let and specialist residential
mortgages, mortgage servicing, administration and retail savings
products. It operates through its brands: Precise and Charter
Savings Bank.
It is differentiated through risk management expertise and
automated technology and systems, ensuring efficient processing,
strong credit and collateral risk control and speed of product
development and innovation. These factors have enabled strong
balance sheet growth whilst maintaining high credit quality
mortgage assets.
CCFS is predominantly funded by retail savings originated
through its Charter Savings Bank brand. Diversification of funding
is currently provided by securitisation programmes and the Bank of
England’s Term Funding Scheme with additional incentives for
SMEs.
Important disclaimer
This document should be read in conjunction with
any other documents or announcements distributed by OSB GROUP PLC
(OSBG) through the Regulatory News Service (RNS). This document is
not audited and contains certain forward-looking statements with
respect to the business, strategy and plans of OSBG, its current
goals, beliefs, intentions, strategies and expectations relating to
its future financial condition, performance and results. Such
forward-looking statements include, without limitation, those
preceded by, followed by or that include the words ‘targets’,
‘believes’, ‘estimates’, ‘expects’, ‘aims’, ‘intends’, ‘will’,
‘may’, ‘anticipates’, ‘projects’, ‘plans’, ‘forecasts’, ‘outlook’,
‘likely’, ‘guidance’, ‘trends’, ‘future’, ‘would’, ‘could’,
‘should’ or similar expressions or negatives thereof but are not
the exclusive means of identifying such statements. Statements that
are not historical or current facts, including statements about
OSBG’s, its directors’ and/or management’s beliefs and
expectations, are forward-looking statements. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to events and depend upon circumstances that may or may
not occur in the future that could cause actual results or events
to differ materially from those expressed or implied by the
forward-looking statements. Factors that could cause actual
business, strategy, plans and/or results (including but not limited
to the payment of dividends) to differ materially from the plans,
objectives, expectations, estimates and intentions expressed in
such forward-looking statements made by OSBG or on its behalf
include, but are not limited to: general economic and business
conditions in the UK and internationally; market related trends and
developments; fluctuations in exchange rates, stock markets,
inflation, deflation, interest rates, energy prices and currencies;
policies of the Bank of England, the European Central Bank and
other G7 central banks; the ability to access sufficient sources of
capital, liquidity and funding when required; changes to OSBG’s
credit ratings; the ability to derive cost savings; changing
demographic developments, and changing customer behaviour,
including consumer spending, saving and borrowing habits; changes
in customer preferences; changes to borrower or counterparty credit
quality; instability in the global financial markets, including
Eurozone instability, the potential for countries to exit the
European Union (the EU) or the Eurozone, and the impact of any
sovereign credit rating downgrade or other sovereign financial
issues; technological changes and risks to cyber security; natural
and other disasters, adverse weather and similar contingencies
outside OSBG’s control; inadequate or failed internal or external
processes, people and systems; terrorist acts and other acts of war
(including, without limitation, the Russia-Ukraine war, the
Israel-Hamas war and any continuation and escalation of such
conflicts) or hostility and responses to those acts; the conflict
in the Middle East; geopolitical events and diplomatic tensions;
the impact of outbreaks, epidemics and pandemics or other such
events; changes in laws, regulations, taxation, ESG reporting
standards, accounting standards or practices, including as a result
of the UK’s exit from the EU; regulatory capital or liquidity
requirements and similar contingencies outside OSBG’s control; the
policies and actions of governmental or regulatory authorities in
the UK, the EU or elsewhere including the implementation and
interpretation of key legislation and regulation; the ability to
attract and retain senior management and other employees; the
extent of any future impairment charges or write-downs caused by,
but not limited to, depressed asset valuations, market disruptions
and illiquid markets; market relating trends and developments;
exposure to regulatory scrutiny, legal proceedings, regulatory
investigations or complaints; changes in competition and pricing
environments; the inability to hedge certain risks economically;
the adequacy of loss reserves; the actions of competitors,
including non-bank financial services and lending companies; the
success of OSBG in managing the risks of the foregoing; and other
risks inherent to the industries and markets in which OSBG
operates.
Accordingly, no reliance may be placed on any
forward-looking statement. Neither OSBG, nor any of its directors,
officers or employees provides any representation, warranty or
assurance that any of these statements or forecasts will come to
pass or that any forecast results will be achieved. Any
forward-looking statements made in this document speak only as of
the date they are made and it should not be assumed that they have
been revised or updated in the light of new information of future
events. Except as required by the Prudential Regulation Authority,
the Financial Conduct Authority, the London Stock Exchange PLC or
applicable law, OSBG expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained in this document to reflect
any change in OSBG’s expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement
is based. For additional information on possible risks to OSBG’s
business, (which may cause actual results to differ materially from
those expressed or implied in any forward-looking statement),
please see the Risk review section in the OSBG Annual Report and
Accounts 2023. Copies of this are available at www.osb.co.uk and on
request from OSBG.
Nothing in this document or any subsequent
discussion of this document constitutes or forms part of a public
offer under any applicable law or an offer or the solicitation of
an offer to purchase or sell any securities or financial
instruments. Nor does it constitute advice or a recommendation with
respect to such securities or financial instruments, or any
invitation or inducement to engage in investment activity under
section 21 of the Financial Services and Markets Act 2000. Past
performance cannot be relied on as a guide to future performance.
Statements about historical performance must not be construed to
indicate that future performance, share price or results in any
future period will necessarily match or exceed those of any prior
period. Nothing in this document is intended to be, or should be
construed as, a profit forecast or estimate for any period.
In regard to any information provided by third
parties, neither OSBG nor any of its directors, officers or
employees explicitly or implicitly guarantees that such information
is exact, up to date, accurate, comprehensive or complete. In no
event shall OSBG be liable for any use by any party of, for any
decision made or action taken by any party in reliance upon, or for
inaccuracies or errors in, or omission from, any third-party
information contained herein. Moreover, in reproducing such
information by any means, OSBG may introduce any changes it deems
suitable, may omit partially or completely any aspect of the
information from this document, and accepts no liability whatsoever
for any resulting discrepancy.
Liability arising from anything in this document
shall be governed by English law, and neither OSBG nor any of its
affiliates, advisors or representatives shall have any liability
whatsoever (in negligence or otherwise) for any loss howsoever
arising from any use of this document or its contents or otherwise
arising in connection with this document. Nothing in this document
shall exclude any liability under applicable laws that cannot be
excluded in accordance with such laws.
Certain figures contained in this document,
including financial information, may have been subject to rounding
adjustments and foreign exchange conversions. Accordingly, in
certain instances, the sum or percentage change of the numbers
contained in this document may not conform exactly to the total
figure given.
Non-IFRS performance measures
OSBG believes that any non-IFRS performance
measures included in this document provide a more consistent basis
for comparing the business' performance between financial periods
and provide more detail concerning the elements of performance
which OSBG is most directly able to influence or which are relevant
for an assessment of OSBG. They also reflect an important aspect of
the way in which operating targets are defined and performance is
monitored by the Board. However, any non-IFRS performance measures
in this document are not a substitute for IFRS measures and readers
should consider the IFRS measures as well. For further details,
refer to the Alternative Performance Measures section in the OSBG
Annual Report and Accounts 2023. Copies of this are available at
www.osb.co.uk and on request from OSBG.
Osb (LSE:OSB)
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Gráfica de Acción Histórica
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