OneSavings Bank, a provider of asset finance, saw its share price fall yesterday despite it posting strong full-year 2019. results.
The UK-based challenger bank declined to issue a full-year outlook over coronavirus-related uncertainty in its results statement, prompting its share price to fall.
OneSavings “set a new 52-week low during Thursday’s trading session when it reached 155.30. Over this period, the share price is down 43.82%,” according to the FT. On 20 March the share price closed at 210.00.
In a statement, the challenger said statutory profit before tax increased 14 per cent for the year ending 31 December to £209m, with pro forma underlying pre-tax profit jumping nine per cent to £381m.
OneSavings Bank’s net loan book grew 105% on a statutory basis to £18.4bn, while its statutory net interest margin – a measure of profitability – was 2.43%.
Andy Golding, chief executive of OneSavings Bank, said: “The UK and global economies are currently experiencing unprecedented uncertainty stemming from Covid-19.
“Whilst we entered the year with a robust pipeline, strong application levels in our core businesses and stable margins, it is too soon to say what the impact will be and we, therefore, consider it imprudent to provide forward guidance for 2020.
“We enter this period of uncertainty as an enlarged business with the strength of our combined lending and funding franchises, robust capital position, secured loan book and strong risk management capabilities.”
According to OSB, the bank “primarily targets market sub-sectors that offer high growth potential and attractive risk-adjusted returns in which it can take a leading position and where it has established expertise, platforms and capabilities.
“These include private rented sector Buy-to-Let, commercial and semi-commercial mortgages, residential development finance, bespoke and specialist residential lending, secured funding lines and asset finance.”