Profits more than double at OneSavings Bank

OneSavings Bank’s profit surged in the first six months of the year driven by a sharp uptick in lending activity, according to results published today.

The specialist lender posted a 123 per cent rise in pre-tax profits in the year to June 2021 to £221.9m, up from £99.3m in the same period last year.

The lender’s net interest margin, the difference between what banks make from lending net what they pay on deposits, rose 19 basis points to 236bps. Meanwhile, return on equity jumped 10 percentage points to 19 per cent.

Mortgage lending proved to be a boon for OneSavings Bank in the first six months of the year as the lender sought to capitalise on soaring demand triggered by prospective homebuyers rushing to beat the stamp duty deadline.

“The property purchase market proved resilient in the first six months of 2021, despite the pandemic, with strong demand stimulated in particular by the temporary reduction in stamp duty, which also brought forward completions from July, as borrowers rushed to meet the end of June deadline,” OneSavings Bank said.

“Landlords are demonstrating higher confidence levels and we continue to support them as they decide to add to their portfolios, remortgage properties within their existing portfolios or incorporate their business, selecting to do so with the Group’s expertise under its brands and mortgage propositions,” it added.