OSB Group has recorded an 11% quarter-on-quarter increase in its originations to £1.2bn in Q1, with good growth in its buy-to-let and residential sectors.

The specialist lending and retail savings group said that this supported a 0.9% rise in its net loan book, which reached £26.1bn, with continued growth in the high-yield sub-segments.

In the three months to 31 March, OSB’s retail deposits jumped by 1.8% to £24.7bn, while it also repaid £350m of ILTR drawings with an outstanding balance of £1.15bn. The group said this contributed to lower total assets as it optimised its liquidity portfolio across the period.

Furthermore, its three-month plus arrears balances remained at 1.7% in Q1, with ongoing strong credit quality of the loan book in Q1.

OSB has also repurchased £30.2m worth of shares under its £100m share repurchase programme announced in March, which is set to complete by 6 March 2027.

In its outlook, the group said it was mindful of the ongoing uncertain geopolitical situation and the impact on the UK economy, the wider mortgage market and borrowers’ affordability.

As a result, OSB said it is "carefully managing" the composition and growth of its loan book, with a continued focus on protection returns as the macroeconomic scenarios evolve.

It added that in its 2026 full-year guidance, its loan book growth is set to be "broadly similar" to 2025, while its return on tangible equity is set to grow by a low-teen percentage.

Chief executive officer at OSB Group, Andy Golding, said that the group delivered a “resilient financial performance” in Q1.

He concluded: “The group’s lending franchise performed as expected in the first quarter. Buy-to-let originations under our Rely brand were strong, supported by an increase in market activity at the start of the year. We continued to tailor our specialist residential mortgage products to the needs of our borrowers by introducing several key policy criteria and saw increased originations in the first quarter. At the end of April, our net loan book growth was in line with our expectations.

"Supported by our new technology platforms, we were able to more effectively manage the impact of the rapid movements in swap rates in the first quarter. We were agile in repricing products, protecting margins and returns while ensuring we remained present in the market for our customers.

"We are making progress through the second year of the transition period to deliver on our medium-term aspirations, with positive outcomes for our stakeholders and strong returns for our shareholders."

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