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Paragon Banking Group PLC on Tuesday backed its annual outlook and hailed a solid start to its financial year, with new lending picking up.
Total lending in the first quarter to December 31 rose 6.9% to £724.0 million from £677.4 million a year prior.
Paragon, which is a mortgage lender, and provider of personal loans and business financing, said buy-to-let lending edged up 0.4% on-year to £425.0 million from £423.2 million. Commercial lending was 18% higher at £299.0 million.
‘We delivered a strong operating performance for Q1. Our digitalisation activities continue apace and we have seen further progress with Spring, our new savings app, with balances now in excess of £800 million. Lending volumes and pipelines across our businesses are robust and we are well placed to continue building on our long-term track record of delivery,’ Chief Executive Nigel Terrington said.
Paragon left its outlook unchanged. For the full-year, it expects a net interest margin between 2.9% and 3.0%. In financial 2025, the NIM was 3.13%.
It said buy-to-let arrears ‘were little changed’ from the year-end.
‘The credit performance in commercial lending continues to normalise as expected,’ Paragon added.
Shares in the company are 1.1% lower at 886.00 pence each in London on Tuesday morning.
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