Kent Reliance owner OneSavings Bank reported a strong third quarter of the year with a 17% increase in its loan book.

Shares surged by 3% in early trading on Wednesday following the announcement but fell away in the second half of the day to only a marginal increase, priced at £4.09.

The Chatham-based lender, which specialises in buy-to-let investors, said new loans and advances grew by £997 million to £6.9 billion.

Bosses said they expect the bank’s new loan book to grow by 20% over the full year.

Chief executive Andy Golding said: “OSB has yet again delivered exceptional performance in the third quarter of 2017 with strong loan book growth and record levels of organic originations at attractive margins.

“I am delighted with OSB’s performance as we continue to focus on professional landlords and increase our market share.”