One Savings Bank has confirmed profits before tax of £8 million for the full year ending 31 December 2012, compared to a loss of £11.1 million in the previous year.
It comes after the group purchased four books of mortgages during the previous period for a total of £283 million with a gross value of £355 million as well as the assets of commercial finance group Interbay and second charge lender Prestige Finance for a total of £106 million.
Today’s results, however, warned that the results were still impacted by low income returned by the back book of mortgages from KRBS (formerly Kent Reliance Building Society).
Andy Golding, chief executive of One Savings Bank, said the group would continue to suffer from this until interest rates return to what was once regarded as more normal levels.
He added: “However, our acquisition and growth strategy is a demonstration of the strength of the new business mode effectively diluting the lack of profitability in the back book. It is extremely pleasing to have returned profit more quickly than anticipated.
“The group’s ongoing focus will be on mortgage and deposit growth to increase net interest income and further acquisitions where we see continuing opportunities to make tactical and strategic acquisitions that generate immediate income and broaden the customer offering.”