29th Jul 2015 07:59
LONDON (Alliance News) - The Paragon Group of Companies PLC said Wednesday it continued to perform in line with its expectations in the nine months to end-June.
The FTSE 250 specialist provider of buy-to-let mortgages said its pretax profit was GBP97.5 million for the nine months, compared to GBP88.8 million a year before.
Its loan portfolios continued to perform well, and during its third quarter buy-to-let completions were GBP370.3 million, which it said was nearly doubled compared to the previous year.
In its Idem Capital arm loan investments continue to perform well, Paragon said, with cash recoveries exceeding underwriting expectations. Paragon Bank's loan portfolio continues to grow as anticipated, and its secured lending proposition also continues to grow as its distribution expands.
Paragon noted that Paragon Bank's medium-term target of financing half of the group's new lending remains on track. GBP124.1 million of completions were financed by Paragon Bank in the third quarter.
The company said it was well placed to generate further growth in each of its target markets. It had a pipeline of buy-to-let business of GBP864.9 million at the end of June, compared to GBP352.7 million at the same point a year before.
Paragon noted that tax changes announced with the recent UK budget may hit some buy-to-let landlords' investment decisions in the future, but said the private rented sector continues to see strong tenant demand, which provides a platform for "strong and stable buy-to-let returns".
Paragon will announce its full-year results on November 24.
Shares in Paragon were up 1.5% at 405.90 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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