Market's view on OneSavings Bank
Published on April 2024
- Approximately 3.5 million shares have been bought back so far, costing less than £14 million, with about £36 million remaining in the buyback programme.
- A profit warning from OSB Group after reporting trading margins lower than expected has led to a sharp decline in share prices, despite slightly better-than-expected financial results for 2023.
- OSB Group is seen as a potential takeover target due to its low valuation and recent share price performance.
- The share buyback activities have notably occurred in large volumes towards the end of trading sessions, specifically in the last 10 minutes of one session, which contributed to a notable price jump.
- OSB Group’s strategic financial activities, including share buybacks and dividend payments, are expected to influence its share price leading up to the ex-dividend date, making the stock’s future performance speculative post that date.
- Concerns are raised regarding the sustainability of OSB’s net interest margin due to increased funding costs and a subdued mortgage market, both exacerbated by higher interest rates; a potential recovery is seen if interest rates decrease.