OneSavings Bank has unveiled strong loan growth as it prepares to integrate Charter Court into its business after a £1.6 billion merger.
The lender said pre-tax profits were flat at £91 million in the six months to June 30, but rose 6% on an underlying basis to £96.9 million.
The net loan book grew 10% during the period, driven by 13% growth in organic originations with high demand across core markets.
Return on equity was 23%, down from 26% this time last year. Net interest margin was down more than analysts had expected, coming in at 278 basis points compared to 301 last year, due to refinancing of the higher-yielding back book. The group announced a 14% increase in the dividend to 4.9p.
It comes as OneSavings prepares to integrate Charter Court Financial Services Group, after the takeover was approved by shareholders in June and gained competition authority approval at the end of July. Due to the impending combination, OneSavings said it was not able to give detailed guidance for the financial year ahead.