StockMarketWire.com - Paragon Banking Group has reported new business volumes rose 3.7% on the previous year to £684.9m, while stable redemption levels meant its net loan book increased by 1.6% to £12.4bn during the period from 1 October to 31 December 2019.

In a trading update for the three months, it confirmed the business had traded in line with management expectations.

Specialist buy-to-let lending was 1.1% higher year-on-year at £375.4m, while 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%.

Paragon Banking said the quarter end pipeline figure for buy-to-let was £814m, 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 £254.1m, representing 12% of its net loan assets at the end of the period.

Deposit balances grew to £6.6bn in December 2019, compared to £5.6bn at the end of 2018, having benefited from product and channel expansion.

Paragon Banking Group chief executive Nigel Terrington called it a 'strong start' to the 2020 financial year and said that the group maintained a 'conservative risk appetite'.

He added: '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.'




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