OneSavingsBank has reported a £29.7m pre-tax profit for the six month ended 30 June, more than four times higher than the previous year’s £7.3m.
The bank advanced £130m in new residential mortgages in the first half of the year, up 26 per cent from £103m advanced in the same period last year. It says first charge residential lending has been particularly strong in London and the South East.
In its half-year results, published today, OneSavings Bank says it was well placed to “take advantage of the disruption in the direct lending portion of the residential mortgage market following the Mortgage Market Review”, as it mainly lends through brokers.
The lender set aside £2.7m in regulatory provisions for the first half of the year, up from £2.1m at the same point last year. The bank says this mainly relates to levies for the Financial Services Compensation Scheme.
OneSavingsBank chief executive Andy Golding says: “These results show the strength and opportunity in the business we have created. We are particularly proud of our return on equity, which has been delivered at a time when we have also delivered a significant growth in lending.”
OneSavings Bank was set up in August 2010 and is jointly owned by Kent Reliance Provident Society and private equity firm JC Flowers, which injected £50m into the company.
In June the lender floated on the stock exchange at a price of 170p a share, raising £38.5m.