OSB Group lifts dividend to 6.5% and reports loan book growth in H1 2026

OSB Group announced a 5% increase in its full‑year dividend to 35.3p per share, taking its dividend yield to roughly 6.5%. The lender also launched a £100 million share‑repurchase programme and maintained a payout ratio of 46‑49% with cash coverage of 2.83 times. The dividend has now been paid for 12 consecutive years.

In the first half of 2026 the specialist mortgage lender’s net loan book rose 1.3% to £26.3 billion, driven by a 10% jump in originations to £2.3 billion. Both buy‑to‑let and residential lending performed well despite macro‑economic uncertainty and elevated mortgage rates. OSB expects net interest margin to fall to 215‑220 basis points and projects a return on tangible equity of about 12.5% for 2026. CEO Andy Golding highlighted the resilience of the business, the progress of its transformation programme and the ongoing competition in the retail savings market.