- Paragon Banking Group
- 29 July 2025 10:20:30
Source: Sharecast
Paragon said loan balances were up 4.8% year-on-year, while deposits grew thanks to a strong showing from its Spring app - the performance of which exceeded expectations, pushing retail savings up 1.5% and earning top-tier customer feedback.
The FTSE 250-listed firm said mortgage advances hit £1.1bn for the nine months ended 30 June, slightly ahead of the prior year, although it noted that stamp duty disruption weighed on completions.
Paragon said its buy-to-let pipeline surged 27.6% from March, while commercial lending volumes rose 6.6%, and net repayments on structured credit dragged total advances down 1.5%. Arrears ticked up slightly in buy-to-let, while legacy development loans continued to necessitate impairments.
While Paragon's FY guidance remained largely unchanged, mortgage lending advances were now expected to come to roughly £1.6bn, which was at the lower end of its previous £1.6bn to £1.8bn guidance.
Chief executive Nigel Terrington said: "The nine months to June 2025 have seen another strong trading period for the group, with loan balances up 4.8% from Q3 2024 and deposit growth supported by the take-up of our new Spring App.
"The momentum in our business and the resilience of our business model means we are well-positioned to continue supporting our customers and delivering strong returns for our shareholders."
As of 1020 BST, Paragon shares had slumped 9.77% to 859.00p.
Reporting by Iain Gilbert at Sharecast.com