Paragon Banking Group PLC Trading Update (3512B)
30 January 2020 - 6:00PM
UK Regulatory
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.
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END
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