Banking group reports ‘excellent’ financial performance

Solihull-headquartered mortgage, savings and business finance provider Paragon Banking Group has reported a strong financial performance in its results for the year ended 30 September 2019.

The listed firm’s underlying profit before tax increased by 5.0 per cent to £164.4 million during the period, while its lending volumes rose by 8.5 per cent to £2.53 billion.

The company has also seen its loan book grow to £12.1 billion thanks to cash generated by the sale of its residual interest in Paragon Mortgages, which it completed in June this year.

Nigel Terrington, chief executive of Paragon, said: “We are delighted to report another excellent financial and operational performance, underpinned by our effective diversification strategy and focus on specialist lending. Volumes, profits and dividends are up strongly, and we are moving closer to our medium-term target of over 15 per cent return on tangible equity.

“Paragon’s transformation to a broadly based specialist banking group has continued over the last year. Our customers have increasingly complex needs which are supported by ongoing technology investments and the deep experience of our employees. This approach, alongside a disciplined and prudent risk appetite, has enabled us to achieve strong lending growth at improving margins, whilst maintaining an exemplary credit performance.

“Whilst there is uncertainty in the environment we have prepared well and look forward with optimism to the opportunities ahead.”