Paragon Group's interims boosted by new product launches
New product launches and an increase in buy-to-let lending drove first half pre-tax profit higher at specialist lender Paragon Group of Companies.
Financial Services
14,164.95
17:14 18/04/24
FTSE 250
19,450.67
17:14 18/04/24
FTSE 350
4,334.00
17:14 18/04/24
FTSE All-Share
4,290.02
16:54 18/04/24
Paragon Banking Group
685.50p
16:45 18/04/24
The FTSE 250 company said pre-tax profit for the six months to the end of March rose 7.6% year-on-year to £62.6m, while its return on equity, an important industry gauge of profit for shareholders, climbed 0.3% to 10.8%.
Net interest income, increased 14.4% to £164.7m, while underlying profit grew 10.4% to £63.9m, although operating expenses rose 18% to £36.6m.
"These results demonstrate how far Paragon has progressed in recent years as one of the UK's leading specialist lenders," said group chief executive Nigel Terrington.
"Considerable growth in buy-to-let lending volumes and strong momentum into the second half of the year have significantly enhanced the group's franchise."
Terrington said the launch of Paragon Bank in February 2014 had presented a new revenue stream for the group, as the bank saw deposits jump from £60.1m to £165m in the first half of the year.
"The substantial increase in capacity and access to new and deeper funding markets, particularly through Paragon Bank, provides the platform to support further sustainable growth and diversification going forward," he said.
Paragon shares were down 0.22% to 449.00p at 09:43 on Tuesday.