27th Jan 2026 09:42
(Alliance News) - 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 GBP724.0 million from GBP677.4 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 GBP425.0 million from GBP423.2 million. Commercial lending was 18% higher at GBP299.0 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 GBP800 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.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Paragon Group