14th Apr 2020 11:12
(Alliance News) - Paragon Banking Group PLC said Tuesday that it has decided to not declare a dividend alongside its results for the six months to March 31 due to the ongoing Covid-19 pandemic.
The FTSE 250-listed bank expects to publish its interim results on May 20, but did warn that it could be delayed as a result of logistical challenges from the independent review arising from the current situation.
For the six month-period, Paragon Banking said prior to any Covid-19 hits, it performed in line with management expectations, with new lending flows in the Specialist buy-to-let business up 0.2% year-on-year at GBP694.6 million, and Commercial lending by 5.7% at GBP481.3 million.
Mortgage Redemptions were down 12% at GBP393.2 million, but the buy-to-let pipeline with up 11% at GBP789.8 million.
Looking ahead, despite its strong performance, Paragon Banking said it remains too early to determine with impact Covid-19 will have on new business flows, but it enters the period of uncertainty with "a strong capital base and significant liquidity".
"Paragon is a strong, resilient and diversified business. Whilst there will undoubtedly be challenges ahead, we are well positioned and will take all responsible action to mitigate any potential impact. The group's operations have reacted well to the rapidly changing environment and I am grateful for the considerable efforts and support of my colleagues in delivering services to our customers in difficult circumstances," said Chief Executive Officer Nigel Terrington.
Shares in Paragon Banking Group were down 0.5% at 341.20 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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