19th May 2015 07:02
LONDON (Alliance News) - Paragon Group Of Companies PLC Tuesday reported higher first-half pretax profit, citing growth in buy-to-let lending volumes and the launch of new products.
In a statement, the company said pretax profit increased to GBP62.6 million in the six months ended March 31, compared with GBP58.2 million in the corresponding period of the prior year. Its return on equity, a key measure of profit for shareholders, increased to 10.8% from 10.5%. The company increased its interim dividend to 3.6 pence from 3.0p.
The FTSE 250 constituent has a trio of division, mortgages, loan portfolio acquisition business and banking, and engages in lending, as well as acquiring and servicing loan portfolios.
Net interest income, the difference between the interest the company receives from customers and what it pays out, increased to GBP164.7 million from GBP143.9 million, while operating expenses were up to GBP36.6 million from GBP31.0 million.
"These results demonstrate how far Paragon has progressed in recent years as one of the UK's leading specialist lenders. Considerable growth in buy-to-let lending volumes and strong momentum into the second half of the year, complemented by the launch of a number of additional products which contribute to the on-going diversification of its income streams, have significantly enhanced the group's franchise," Chief Executive Nigel Terrington said in a statement.
The CEO said the launch of Paragon Bank, where retail deposits increased to GBP165.0 million from GBP60.1 million during the six months, presents an opportunity for the company. Paragon Bank was launched in February 2014.
"The substantial increase in capacity and access to new and deeper funding markets, particularly through Paragon Bank, provides the platform to support further sustainable growth and diversification going forward. The bank has made excellent progress since its launch just over a year ago and is on track to break even during the 2016 financial year," Terrington said.
By Samuel Agini; [email protected]; @samuelagini
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