OneSavings Bank has said its full-year pre-tax profit more than doubled as new business wins helped increase its loan portfolio and it tightly controlled costs.
The bank, which was formed following the recapitalisation of Kent Reliance Building Society by US private equity group JC Flowers in 2011, said it anticipated demand to remain strong with focus on "high value, underserved markets".
Underlying pre-tax profit rose to £69.7 million in the year ended December 31, compared with £30m a year earlier.
OneSavings Bank, which went public last year, provides residential mortgages, buy-to-let, small and medium and personal loans.
Net interest margins rose to 291 basis points from 211 basis points a year earlier, while loans and advances grew 29 per cent to £3.9 billion.
RBC Capital Markets, which has an "outperform" rating on the stock, increased its target price to 315 pence from 240 pence.
The bank said it would pay a maiden dividend of 3.9 pence per share for the year ended December 31.
OneSavings Bank was the first among a number of new banks that listed on the London Stock Exchange last year to challenge the dominance of Britain's big four banks that control more than 80 per cent of the personal current account market and over 85 per cent of small business banking.
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