Paragon Banking Group has published its half-year results for the six months ended 31 March 2022.
Underlying profits increased 27.3% to £105.5 million, while statutory profit before tax was up 49.0% at £143.6 million.
Meanwhile, new lending levels rose 32.2% from 2021 H1 to £1.49 billion. Paragon’s buy-to-let pipeline was up 44.4% from March 2021 at £1.34 billion and its development finance pipeline and undrawn commitments was up 30.7% from March 2021 at £0.80 billion.
Paragon completed £854.6 million of buy-to-let loans in the six months to 31 March 2022, 98.2% of which were classed as specialist buy-to-let.
A total of £353 million of completions were for properties with an EPC of between A and C, a 38.4% increase on 2021.
Meanwhile, retail savings deposits increased by 14.2% to £9.9 billion.
Nigel Terrington (pictured), chief executive of Paragon, said: “These excellent results demonstrate the considerable progress we have made in fulfilling our strategic ambitions. Strong growth in new lending at attractive margins has supported the Group’s earnings and return on tangible equity progression while capital levels remain comfortably in excess of our regulatory requirements, providing the foundation for further growth and additional capital returns in the future. Whilst the UK economy faces headwinds, we have a high quality loan book and we are confident in our momentum, and have upgraded our guidance for the full year.
“Good progress has been made in delivering our multi-year digitalisation plans, which will enhance customer experience and drive greater operational efficiency over time.
“Given the Group’s strong profit performance and capital position we have extended this year’s share buy-back by an additional £25 million.”
