Paragon sees the virtue of buy to let lending
SOLIHULL-based financial services firm Paragon Group has recorded an impressive set of results on the back of a boom in the buy to let area.
Announcing its results for the year ended September 30, it revealed underlying profit before tax increased by 10.2% to £134.7m (2014: £122.2m).
New buy-to-let lending increased by a huge 102% to £1,326.6m and the firm’s buy-to-let pipeline is up 72.1% to £713.7m (2014: £414.8m).
Paragon Bank deposit balances increased to £708.7m.
Paragon said its share buy-back programme is to be extended into 2016, by up to £50m.
Nigel Terrington, chief executive of Paragon, said: “I am delighted to report another year of excellent progress for Paragon, as we continue our strategy of diversifying the group’s income and funding streams, whilst continuing to improve shareholder returns.
“Paragon Bank’s development over a short space of time has been significant and the recent acquisition of Five Arrows Leasing Group takes us into the SME finance market. We are looking forward to working closely with the Five Arrows management team on a business that has substantial growth potential under Paragon’s ownership.
“The group’s financial performance has been strong, including profit growth of 10.2%. Buy-to-let volumes increased by 102% and our pipeline at the year-end was up 72%.
“The level of capacity and diversification we have achieved in our funding, including over £950m in retail deposits raised to date through Paragon Bank, will allow us to capitalise on future growth opportunities.”
