OSB Group is one of the largest specialist banks in the UK, with a market-leading position within the buy-to-let space. Whilst we acknowledge the Group has a less attractive growth outlook than its peers, we see scope for it to maintain attractive mid-teen RoTE levels, despite it gearing to the regulatory capital headwinds created by Basel 3.1. As a result, we believe that the current rating of 0.8x P/TB does not appropriately reflects OSB’s value as well as the attraction of the capital return ....
