By Najat Kantouar
Paragon Banking Group has announced that its first-quarter performance aligns with the expectations of the board. The U.K.-based property-and-business lender reiterated its full-year guidance, demonstrating a positive start to the new year.
During the quarter ended December 31, the company reported new lending across the business to amount to £610.7 million ($776.1 million), compared to £861.7 million in the same period last year.
The buy-to-let lending pipeline stood at £559.6 million at the end of the quarter and comfortably exceeds the projected level for the end of 2023.
In terms of balance sheet loans, Paragon recorded a 1.1% growth, reaching £15.04 billion during the period. The company’s common equity Tier 1 and total capital ratios remain robust at 14.7% and 16.7%, respectively.
Paragon has maintained its guidance for fiscal year 2024 regarding margins, new business flows, operating costs, and return on tangible equity. Furthermore, margins are currently performing slightly above expectations.
Chief Executive Nigel Terrington expressed his satisfaction with the strong start to the year, stating that the positive momentum from 2023 has persisted. The company’s robust margins and resilient credit performance further contribute to its ongoing success.