Paragon’s buy-to-let lending recovers in H1

The value of the bank’s pipeline at the end of the six months to 31 March was up 17 per cent on H1 2020 with £926.7m waiting to be approved.

Development finance pipeline business was up 65.2 per cent from March 2020 at £0.32bn

Total lending for the group, which includes development finance, SME lending and motor finance was 45 per cent to £1.13bn compared to H2 2020 but 11 per cent below the £1.27bn advanced in H1 2020.

In its half year results, the group said that despite retaining a tighter risk appetite throughout the H1 period than before the pandemic, the period closed with strong new business pipelines in buy-to-let and development finance. Combined with the return of its normal appetite for risk after the period end, it expected continued and increased lending momentum in the second half of its financial year.

Underlying profits increased 44.9 per cent to a record high at the half-year of £82.9m.

Statutory profit before tax up 68.8 per cent at £96.4mn from £57.1m in H1 2020.

Nigel Terrington (pictured), chief executive of Paragon, said: “I am incredibly proud of these results. They reflect the hard work of our people during a challenging period as well as the success of our longstanding strategy to build a technology-enabled specialist banking group.

“We have delivered record half-year profits and go into the second half of 2021 with strong momentum, healthy new business pipelines and enhanced margins.

“We look forward to the second half with strong capital ratios, prudent liquidity and with growing confidence as the UK emerges from the Covid crisis.”