In its results for the six months ended June 30, the FTSE 250 firm reported underlying net loan book growth of 2% to £18.5bn, although underlying pre-tax profits fell 14% to £156.3mln.
The group also made an underlying gain on structured asset sales of £33mln, up from £29.8mln a year ago, while the company said it had also granted payment holidays to around 26,000 accounts to help support its customers during the pandemic, most of which have now resumed payment.
Looking ahead, OneSavings chief executive Andy Golding said the company has been “encouraged” by a recovery in application volumes since the housing market reopened, with volumes running at around 60% of pre-lockdown levels on tighter lending criteria and higher pricing.
The CEO added that the firm expects to deliver “double digit underlying net loan book growth for the full year”, while the company said it will continue to assess the appropriateness of dividend payments at the end of the year.
“It remains too early to say what the full impact of [coronavirus] will be on the UK economy, nevertheless we will continue to be there for our customers, supporting them in the best way that we can. The foundations of our business remain extremely strong, with a very strong capital position and a prudent business model, all of which position us well to respond to the challenges and opportunities ahead and to continue to support our colleagues, customers and communities and deliver value to our shareholders over the long-term”, Golding said.
In a note on Thursday, analysts at broker Shore Capital reiterated their ‘buy’ rating on the stock following what they said was a “very encouraging performance from a resilient operator”.
The company’s shares were up 16% at 302.4p in early deals.