OSB reported an 8% decline in pre-tax profits for 2025, from £418 million to £383 million, but saw growth in its loan book.
The credit group, which owns mortgage brands including Precise, Kent Reliance, Rely, Charter Savings Bank, Interbay and Heritable, recorded 3.2% growth in its net lending portfolio, which stood at £25.9 billion.
According to the report, loan portfolio growth was supported by a 19% increase in new loans to £4.7 billion and a continued focus on diversification into higher yielding parts of the market.
The decline in pre-tax profit was related to an impairment in 2025, while the group received a creditback in 2024 following a previous impairment.
This was partially offset by an increase in net interest income, a gain on the sale of the second mortgage portfolio and an increase in income from commissions and service charges, OSB said.
In September 2025, OSB sold its second mortgage portfolio for £134.2 million, translating into a profit of £3.4 million.
In December 2024, £1.25 billion of buy-to-let mortgages were securitized, resulting in a loss on the sale of £2.4 million from this transaction.
CEO Andy Golding said: “The Group delivered a resilient financial performance in the first year of the transition period, which was in line with our 2025 expectations.
“We have also made tangible progress on our strategy that we outlined at last year’s Investor Update.
“The diversification of the loan portfolio is gaining momentum and in 2025, combined productions in our higher yielding sub-segments grew by 53%.
“The gross rental loan portfolio represented 68% of the group’s total gross loan portfolio, down from 70% a year ago, which is on track with our 2029 target.
“Finally, many milestones were achieved in the transformation program during the year.
“I am particularly pleased with the launch of our new lending platform, a new brand targeting buy-to-let borrowers: Rely, as well as a successful migration of some of our existing savers to the new savings platform.
“All of this was accomplished on time and within budget.”