Our strategic framework

Our strategic objective is to be a leading specialist lender in our chosen sub-sectors, supported by a strong retail savings franchise.

Select each of our five strategic priorities below to find out more about our goals and the progress made in 2017.


Our goals

2017 Progress

Grow profitable loan origination in key markets

  • Deliver strong end-to-end propositions in target markets

  • Develop our more cyclical businesses

  • Deliver incremental non-organic business

  • Invest in highly responsive, customer-focused culture

  • Innovate to secure sustainable long term market leadership

  • BTL origination up 27% to £1,959m and residential origination up 14% to £382m
  • Residential mortgage portfolio acquisitions for £181m
  • Four new secured funding lines added
  • Received multiple awards including Best Specialist Lender and Best Buy-to-Let Mortgage Provider
Looking forward Key risks KPI
  • Focus on organic growth in underserved sub-sectors
  • Identify new market sub-sectors with high returns on a risk-adjusted basis
  • Market condition affecting long term demand
  • Increased regulatory pressure
  • Continued political uncertainty
  • New specialist lenders entering the market

Loan book growth £7.3bn


Our goals

2017 Progress

High quality decisions protecting the business

  • Skilled manual underwriting supported by clever technology

  • Deliver a high quality, differentiated service supported by highly responsive decision making

  • Clear decisions recognised by intermediaries for their quality and fairness – a critical friend

  • Integrated underwriting across all brands

  • More than 38,500 loans totalling £8.3bn originated since the Bank’s creation in 2011 with only 137 cases of arrears over 3 months, with an aggregate balance of £18.4m and an average LTV of 63%
  • New technology solution for assessing multi-property portfolios
  • Transactional Credit Committee met 103 times to assist with more complex or larger new mortgage applications
Looking forward Key risks KPI
  • Identify additional technology to support decision making
  • Continue training and coaching to further strengthen the underwriting expertise of our team
  • Maintain focus on consistent decision making outcomes
  • Find ways to be even more responsive to intermediaries and borrowers whilst remaining a critical friend
  • Changing regulation for underwriting
  • More complex underwriting requirements
  • Difficulty in recruiting experienced staff
  • Increasing intermediary demands
  • Demands of ever-changing technology

Loan loss ratio 7bps


Our goals

2017 Progress

Increase partner reach in response to demand

  • Provide access to specialist products developed by listening to intermediary partners

  • Be accessible and available to intermediaries

  • One distribution model across all brands

  • Gain intermediary recognition for delivering long-term sustainable proposition

  • Deliver bespoke solutions to meet intermediary and customer needs

  • Introduced high tech solution to ease the burden for assessing multiproperty portfolios
  • Success of Choices programme in increasing retention rates in 2017
  • Restructured relationship team to increase levels of engagement
  • Attended c.150 intermediary events across our target geographies
  • Enhanced marketing and brand support for intermediaries
  • Published periodic market leading ‘Buy-to-Let Britain’ reports
Looking forward Key risks KPI
  • Develop enhanced intermediary education programme
  • Continue to deliver direct relationships with high quality intermediaries
  • Deliver deeper relationships with more of our target intermediaries
  • Deliver best in class service performance as we grow and enter new market sub-sectors
  • Loss of key broker relationships
  • Competition reducing pricing below OSB’s risk-adjusted return appetite
  • More complex underwriting requirements slowing the process

Gross new lending £2.6bn


Our goals

2017 Progress

Stable, high quality funding platform

  • Be primarily funded through attracting and retaining a loyal retail savings customer base

  • Provide access to our service for customers through their channel of choice
  • Ensure liquidity requirements are met through the economic cycle

  • Deliver a proposition offering transparent, straightforward savings products, providing long-term value combined with excellent service levels

  • Gained c.27k new savings customers
  • Achieved 90% customer retention
  • Received multiple awards for savings products including ISA Provider of the Year and Best Cash ISA Provider
  • Loan to deposit ratio of 92%1
  • Launched new Corporate Deposit proposition

1. Excluding impact of TFS/FLS drawdowns

Looking forward Key risks KPI
  • Enhance service proposition by investing in technology for digital transformation
  • Continue to invest in and diversify distribution channels from branches to digital
  • Broaden savings propositions further to include wider savings needs
  • Increased competition for retail funds
  • Potential NS&I/government intervention in the market
  •  Increased customer expectation for technology compared to difficulty and cost of delivery
  • Increased burden of regulatory compliance – for example, Open Banking (which currently does not apply to OSB)

Customer NPS +62


Our goals

2017 Progress

Best in class customer service

  • Put customer service at the heart of everything that we do

  • Extend activity in OSBIndia, developing high quality areas of excellence

  • Create structure-delivering solutions using cross-company expertise

  • Deliver cost efficiencies through excellent process design and management

  • Investments in training and process development contributed to enhanced customer NPS of +62 Increased OSBI headcount by 31% to 276
  • Increased OSBI headcount by 33% to 366
Looking forward Key risks KPI
  • Extend measurement by benchmarking to best in class
  • Introduce robotics technology and improve workflows to further enhance service in primary servicing
  • Increase change capacity through enhanced end-to-end project management capability
  • Difficulty in continuous service improvement as OSB grows
  • Global economic uncertainty increasing costs in India
  • Increasing complexity from compliance with changing regulation
  • Lack of operational resilience due to rapid growth

Cost: income ratio 27%


1. Prior to 2017, OSB deducted coupons on equity Perpetual Subordinated Bonds (‘PSBs’) accounted for as dividends from underlying profit before and after tax, net interest margin and cost to income ratio. Following a review of market practice in advance of the Bank’s AT1 issue in May 2017, OSB no longer deducts these coupons from the calculation of these key performance indicators. The comparatives have been restated accordingly. Interest payments on AT1 securities classified as dividends are treated in the same way.

Our business model

Find out more about our business model

Our brands

Find out about each of our trading brands