18th Sep 2018 09:11
LONDON (Alliance News) - FTSE 250-listed Paragon Banking Group PLC said on Tuesday, ahead of its year-end on September 30, the business has continued to perform in line with management expectations.
The mortgage and loans provider reiterated its previous guidance on annual volumes, margins and costs first made in its interim results. Mortgage volume is expected to exceed GBP1.6 billion from GBP1.46 billion, and commercial lending volume will reach around GBP600 million from GBP558 million the year before.
Net interest margin is expected to rise by 5 basis points from 2.13%, and operating costs are set to be in the range of GBP105 million to GBP115 million, up from GBP102.3 million the prior year.
Underlying profits for the year remains in line with expectations, but the disposal of Idem Capital, Paragon's portfolio purchase division will have a one-off impact of seven pence per share on earnings for the year.
The buy-to-let pipeline as at September 30 is also expected to be over 25% above the year before, to support lending volumes into the next year.
"In spite of the prevailing macro uncertainties we are well placed to benefit from scale economies in the Commercial Lending division, and the group continues to cement its position as a leading lender to professional landlords in the UK, underpinned by its 22 year history in this market. We look to the future with confidence," said Chief Executive Nigel Terrington.
Paragon Banking will release its full-year results on November 21.
Shares in Paragon Banking were up 2.1% at 463.80 pence on Tuesday
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