TIDMPAG

RNS Number : 3512B

Paragon Banking Group PLC

30 January 2020

PARAGON BANKING GROUP PLC

30 January 2020

PARAGON BANKING GROUP PLC

Trading update

Continued progress in specialist markets

Paragon Banking Group PLC ("the Group" or "Paragon") today publishes its trading update based upon the business performance from 1 October to 31 December 2019.

The business has traded in line with management expectations for the quarter. At GBP684.9 million, new business volumes were 3.7% higher than in the previous year and, with stable redemption levels, the net loan book increased by 1.6% during the quarter to GBP12.4 billion.

Specialist buy-to-let lending was 1.1% higher year-on-year at GBP375.4 million. Other mortgage and amateur buy-to-let volumes were lower in comparison, following the Group's decision to focus on higher margin, professional business, with overall mortgage lending down 4.0%. The quarter end pipeline figure for buy-to-let was GBP814 million (11.6% higher year-on-year), of which 92% was specialist.

Paragon's commercial lending new business volumes were 19.9% higher than the comparable quarter at GBP254.1 million. The faster growth rate in commercial lending reflects the low market share of its business lines relative to the mortgage division. At the quarter end, commercial lending represented 12.0% of the Group's net loan assets. Asset quality remains stable.

Deposit balances grew to GBP6.6 billion in December (2018: GBP5.6 billion) and continue to benefit from product and channel expansion, demonstrating the effectiveness of the Group's savings proposition development. The Group continues to make good progress in its preparations for an IRB application and its unaudited CET1 ratio stood at 14.2% at the quarter end.

Commenting on the update, Nigel Terrington, Chief Executive, said:

"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. We look forward to the year ahead with confidence as we continue to pursue a diversification strategy. Whilst we welcome recent survey reports indicating improving confidence, it is too early to determine whether this will convert into a sustained improvement in economic activity and we will continue to maintain conservative risk appetite."

For further information, please contact:

 
 
   Paragon Banking Group PLC                                     Headland 
 
   *    Nigel Terrington, Chief Executive Tel: 020 7786 8455        *    Lucy Legh 
 
 
                                                                   Tel: 020 3805 4822 
 
      *    Richard Woodman, Chief Financial Officer 
 
 
     Tel: 0121 712 2607

Paragon will be releasing its half-year results for the six months to 31 March 2020 on Wednesday 20 May 2020.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

TSTSESFWUESSEDF

(END) Dow Jones Newswires

January 30, 2020 02:00 ET (07:00 GMT)

Paragon Banking (LSE:PAG)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Paragon Banking Charts.
Paragon Banking (LSE:PAG)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Paragon Banking Charts.