Why the City can’t stop talking about OSB
OSB Group has a new boss, but chatter in the City and deal speculation persists. Samuel Norman takes a look at one of Britain’s lesser-known lenders and what could be around the corner. Few financial institutions crop up more in discussions with fee-hungry deals advisers than Onesavings Bank. It’s a firm lesser-known in households across [...]
OSB Group, a lesser-known British lender, continues to be a hot topic among dealmakers and financial institutions in the City of London. The bank, known for its buy-to-let mortgage arm, has £26.3bn in customer loans, but low profitability from retail savings has put pressure on its finances. With £25bn in retail savings, OSB pays high rates to attract savers, resulting in a cost of interest of £478m in the first half of 2026 and a forecast net interest margin of around 2.2%.
While there have been talks of a potential acquisition, the most significant dealbreaker has been valuation. HSBC explored a potential bid for OSB last year, but ultimately decided against making a formal offer due to valuation concerns and the bank's "messy footprint". Other banks like Barclays and Santander have also shown interest but have not gone as far as making a formal offer.
Despite the volatility and challenges, OSB's new boss, Enrique Labiano, took the helm just weeks ago, with the expectation of a period of stability and calm.
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