|Bid||470.00 x 0|
|Ask||479.80 x 0|
|Day's range||470.00 - 470.00|
|52-week range||4.83 - 499.30|
|Beta (5Y monthly)||1.43|
|PE ratio (TTM)||11.08|
|Forward dividend & yield||0.14 (3.01%)|
|Ex-dividend date||15 Apr 2021|
|1y target est||N/A|
A very strong balance sheet, the achievement of a double-digit return on equity in 2020 despite the pandemic and the prospect of substantial dividend growth after this month’s resumption of payments all bode well for OSB, the FTSE 250 bank. We already have a 36.4pc capital gain in the bag, plus dividends, since our study of the stock in November 2018 and, assuming anything like a degree of economic normality, the specialist lender looks capable of providing the ideal combination of further share price gains and dividend growth. OSB specialises in niche sectors of the mortgage market, notably buy-to-let and properties for small businesses. It effectively doubled down on those areas when it acquired Charter Court Financial Services in 2019. As a result investors took fright when the pandemic struck just over a year ago, as they wondered what damage rising unemployment and a housing downturn could do to the balance sheet at a time when net interest margins were under pressure thanks to rock-bottom interest rates and quantitative easing. According to the full-year results published earlier this month, net interest margins did indeed fall in 2020, to 2.19pc from 2.43pc (no small matter on a net loan book of £19.2bn), and the loss ratio jumped to 0.38pc of the loan book from 0.13pc. Some of last year’s legitimate concerns were borne out. In addition, OSB had to take a £20m provision against a potential fraud.
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(Reuters) -Britain's OSB became the first lender to flag the potential impact of negative rates on its business Thursday, but its chief executive said he did not see a scenario where savers were charged to hold their cash as likely. The Bank of England has already cut rates to a historic low of 0.1%, as policy-makers across the world seek to support a swift economic recovery from the coronavirus crisis. OSB, among a new generation of lenders set up to challenge the dominance of Britain's centuries-old banking institutions such as Lloyds, said that negative rates were unlikely to have an impact on it until they reached -0.75% or lower.