Profits up at Paragon
SOLIHULL mortgage and credit group Paragon has reported a set of strong results in its interim management statement.
It generated operated profits of £20.3m in the period October 1, 2011 to date, compared to £18.1m in the corresponding period in the previous year. It is attributing the increase to income generated from the group’s new business developments.
The group’s loan portfolio has also continued to perform in line with its expectations. Redemptions across the loan books remain low and the credit performance across the portfolio, including legacy buy-to-let and consumer assets, newly originated buy-to-let assets and the acquired books, continues to be strong.
During the quarter £37.4m of new buy-to-let loans were advanced and a further £1.2m was advanced by way of further advances to existing borrowers. At 31 December 2011 the pipeline of new business amounted to £95.1m.
In October the group’s investment division Idem Capital completed the purchase of a portfolio of unsecured consumer loans from The Royal Bank of Scotland for £43.2m and a further acquisition of unsecured consumer loans was completed this month.
A further significant portfolio purchase was completed just before the end of the quarter. In December Idem Capital acquired a portfolio of closed credit card receivables from MBNA Europe Bank Limited, for £55.7m.
The group says it will continue with its acquisition strategy.
