Full-year profits jump at Paragon Banking

Paragon Banking reported a surge in full-year profits on Tuesday as lending grew.

In the year to 30 September, operating profit before fair value items rose 16.4% to £226m, while statutory pre-tax profit surged 95.6% to £417.9m.

Total new lending was up 23.6% to £3.21bn, with mortgage landing advances 17.2% higher at £1.91bn, while commercial lending advances rose 34.3% to £1.30bn.

Paragon said trading had been strong across the group, with a combination of strong loan growth, widening net interest margins and tight cost control.

Chief executive Nigel Terrington said: "These results reflect an outstanding financial and operational performance, delivering good growth, enhanced margins and improved cost efficiency, all combining to deliver strong returns to shareholders.

"As a leading specialist banking group we are increasingly using technology to strengthen our franchises. New digital platforms introduced in the last year are already seeing tangible evidence of an enhanced customer proposition and service delivery, as well as improved cost efficiencies.

"Our cautious risk appetite, high quality loan book and extensive through-the-cycle experience ensure we are well positioned as we head into 2023 and are fully prepared to support our customers' needs."