Paragon Banking: Business Continues To Operate In Line With Board’s View

Paragon Banking Group plc (PAG.L) issued a trading update based upon the business performance from 1 October 2017 to 30 June 2018. The Group reported that, in the quarter to June 2018: Mortgage lending totalled 409.4 million pounds, Commercial lending totalled 179.7 million pounds, and Net loan growth totalled 171 million pounds. The Group’s retail deposit balances rose to 4.9 billion pounds at 30 June 2018. Paragon Banking said its preparations for an IRB authorisation remain on target.

Nigel Terrington, Chief Executive said: “The Group continues to make strong progress towards its objective of being a leading specialist bank. The core buy-to-let business continues to see strong demand from professional landlords and the addition of Titlestone is expected to accelerate the growth of our Commercial Lending arm. We remain on track to achieve our 2018 targets and the business is well-placed to make further strong progress in 2019.”

Looking forward, Paragon Banking said its volume guidance given with the Group’s interim accounts is maintained (1.6 billion pounds of Mortgage advances and over 0.6 billion pounds of Commercial Lending advances in the year). The Titlestone acquisition is expected to have a modestly positive impact on the Group’s net interest margin in 2018, pre-Titlestone net interest margins remain in line with expectations.

The Group stated that it will be releasing full-year results for the twelve months to 30 September 2018 on 21 November 2018.

by RTTNews Staff Writer

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