Paragon has reported an improved arrears position as it publishes its Interim Management Statement based on the performance of the business from 1 October 2009 to date.
The group says its portfolio of loans continues to perform in line with its expectations. Redemptions across the loan books remain low, at levels similar to the second half of the year ended 30 September 2009, whilst customer payment performance continues to be superior to market wide data, it claims.
Arrears on the buy-to-let portfolio improved further during the quarter despite seasonal payment disruption typical of the Christmas period, with the percentage of accounts three months or more in arrears falling to 150bp at 31 December 2009 from 154bp at 30 September 2009.
Income, operating expenses and provisions for losses during the first quarter of the financial year were in line with management’s expectations, resulting in operating profits (before fair value items) of £13.2 million. Pre-tax profits, inclusive of a charge of £0.1 million for fair value hedging items, were £13.1 million for the period.
Paragon said continues to monitor developments in the securitisation markets and the potential for new issuance by the Group on terms which meet its requirements to support new lending.
