30th Jan 2020 09:36
(Alliance News) - Paragon Banking Group PLC on Thursday reported "good" progress made in the first quarter of its current financial year, with a growing loan book and new business volumes.
The FTSE 250-listed mortgage, savings and business finance provider said it has traded in line with forecasts in the three months to the end of 2019, with new business volumes 3.7% higher year-on-year, at GBP684.9 million.
Paragon's commercial lending new business volumes were 20% higher year-on-year, at GBP254.1 million, with asset quality remaining stable.
The net loan book, meanwhile, increased by 1.6% during the quarter to GBP12.4 billion, Paragon said.
Specialist buy-to-let lending was 1.1% higher year-on-year at GBP375.4 million, but other mortgage and amateur buy-to-let volumes were lower amid Paragon's decision to focus on higher margin professional business, with overall mortgage lending down 4.0%.
Deposit balances grew to GBP6.6 billion in December from GBP5.6 billion a year earlier, the company said, benefiting from product and channel expansion.
The company's CET1 ratio stood at 14.2% at the quarter end.
"The group has made a strong start to our 2020 financial year where good progress has been achieved in our key divisions. Our loan portfolios continue to deliver an exemplary credit performance," said Chief Executive Nigel Terrington.
He added: "We look forward to the year ahead with confidence as we continue to pursue a diversification strategy."
Paragon's financial year runs to September 30.
Paragon shares were trading 0.8% lower in London on Thursday at 523.00 pence each.
By Evelina Grecenko; [email protected]
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