OneSavings Bank plc
("OSB or the "Company")
Acquisition of UK residential mortgages (the "Transaction")
OneSavings Bank plc today announces that it has completed the purchase of a portfolio of UK first charge residential mortgages (the "Portfolio").
The outstanding balance of the Portfolio was £112m as at 29 February 2016 and the Portfolio is being acquired at a discount to par.
Key highlights of the Portfolio are as follows:
The Transaction is in the ordinary course of the Company's business and the acquisition of the mortgage loans will be satisfied by cash from the Company's existing resources.
Commenting on the Transaction, Group Commercial Director of OneSavings Bank, Jens Bech, said:
"We are delighted to further demonstrate our ability to acquire high quality loan portfolios at attractive prices, which complements the Company's organic origination strategy. We have a disciplined investment process and make acquisitions where there is a strong fit in terms of strategy, risk profile and projected financial returns. We will continue to evaluate inorganic opportunities as they arise."
OneSavings Bank plc
Alastair Pate t: 01634 838 973
Robin Wrench / Simone Selzer t: 020 7404 5959
About OneSavings Bank plc
OneSavings Bank plc ('OSB') began trading as a bank on 1 February 2011 when the trade and assets of Kent Reliance Building Society ('KRBS') were transferred into the business. OSB is a specialist lending and retail savings group authorised by the Prudential Regulation Authority, part of the Bank of England, and regulated by the Financial Conduct Authority and Prudential Regulation Authority.
OSB focuses on selected sub-sectors of the lending market in which it has established expertise, platforms and capabilities, and where opportunities have been identified for both high returns on a risk-adjusted basis and strong growth. These include Residential Mortgages (comprising first charge, second charge and shared ownership), Buy-to-Let/SME and Personal Loans. OSB originates organically through specialist brokers and independent financial advisors.
OSB is predominantly funded by retail savings originated through the established Kent Reliance franchise, which includes a network of branches in the South East of England, as well as online and postal channels. Diversification of funding is currently provided by a securitisation and OSB joined the Funding for Lending Scheme in early 2014.