Paragon Banking profit up amid growth across business lines
Paragon Banking Group posted a rise in full-year profit on Thursday thanks to a solid performance across its business lines.
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In the year to the end of September, underlying profit was up 1% to £145.2m, with earnings per share up 6.4% to 43.1p and underlying return on tangible equity of 13.4% compared to 12.9% in 2016.
Total lending increased by 28.8% to £1.85bn, while buy-to-let completions rose 20.6% to £1.4bn and commercial lending was up 66.8% to £388.9m. Retail deposits nearly doubled over the year to £3.6bn from £1.9bn.
Meanwhile, the core tier 1 ratio came in unchanged at 15.9% and the company announced a further £50m share buyback programme.
Chief executive Nigel Terrington said: "The improving strength and depth of the group's franchises reflects the growing importance of specialist lending in the UK retail banking market as it undergoes much needed structural change.
"Paragon has undergone an extraordinary transformation in recent years with the diversification strategy delivering six new lending product lines and a growing deposit taking capability. The organisational restructure completed recently has enhanced this transformation, creating a new operating model which has immediate organisational benefits and will deliver improving funding efficiencies and capital mobility in the future. Significant progress has been made in our strategic development and we have put in place the foundations to support the growing demands and expectations of our customers and intermediaries and the increasing range of opportunities in specialist lending markets."