FTSE 250-listed Paragon Bank Reports Strong Performance and Updates Targets
Paragon Bank, listed on the FTSE 250, has announced that its new business levels are exceeding expectations, keeping the lender on track to meet its full-year targets.
Headquartered in Solihull, West Midlands, Paragon specializes in providing loans to professional landlords with at least four properties and to medium-sized housebuilders seeking loans between £5 million and £10 million.
In its trading update for the nine months ending in June, Paragon reported robust buy-to-let application flows, which have led to a slight increase in its pipeline to £888.5 million, up from £594.6 million at the end of September last year.
Commercial lending volumes also surpassed those of 2023, with growth in SME lending helping to counterbalance reduced flows in property and motor finance. Additionally, the bank observed a rise in enquiries for property loans since its half-year results in June.
The update highlighted a positive outlook for the sector, bolstered by the new government’s commitment to increasing house building.
Stress in the buy-to-let portfolio remains minimal, with three-month arrears decreasing to 44 basis points at the end of June from 68 basis points in March. However, there was a slight increase in stage 3 accounts in property finance, continuing from June’s report.
Paragon Bank has maintained its guidance for the remainder of the year, including a net interest margin of 310 basis points, mortgage lending advances between £1.4 billion and £1.6 billion, and commercial lending between £1.1 billion and £1.2 billion.
Nigel Terrington, the bank’s long-standing CEO, stated, “Margins, costs, and credit performance remain in line with expectations, while strong new business flows reflect improving customer sentiment and more favorable economic conditions. We are carrying good momentum into the remainder of the year, supported by our strong balance sheet and high-quality customer base, positioning us well to leverage improving market conditions.”
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By Benjamin
FTSE 250-listed Paragon Bank Reports Strong Performance and Updates Targets
Paragon Bank, listed on the FTSE 250, has announced that its new business levels are exceeding expectations, keeping the lender on track to meet its full-year targets.
Headquartered in Solihull, West Midlands, Paragon specializes in providing loans to professional landlords with at least four properties and to medium-sized housebuilders seeking loans between £5 million and £10 million.
In its trading update for the nine months ending in June, Paragon reported robust buy-to-let application flows, which have led to a slight increase in its pipeline to £888.5 million, up from £594.6 million at the end of September last year.
Commercial lending volumes also surpassed those of 2023, with growth in SME lending helping to counterbalance reduced flows in property and motor finance. Additionally, the bank observed a rise in enquiries for property loans since its half-year results in June.
The update highlighted a positive outlook for the sector, bolstered by the new government’s commitment to increasing house building.
Stress in the buy-to-let portfolio remains minimal, with three-month arrears decreasing to 44 basis points at the end of June from 68 basis points in March. However, there was a slight increase in stage 3 accounts in property finance, continuing from June’s report.
Paragon Bank has maintained its guidance for the remainder of the year, including a net interest margin of 310 basis points, mortgage lending advances between £1.4 billion and £1.6 billion, and commercial lending between £1.1 billion and £1.2 billion.
Nigel Terrington, the bank’s long-standing CEO, stated, “Margins, costs, and credit performance remain in line with expectations, while strong new business flows reflect improving customer sentiment and more favorable economic conditions. We are carrying good momentum into the remainder of the year, supported by our strong balance sheet and high-quality customer base, positioning us well to leverage improving market conditions.”