Paragon reports new buy-to-let lending up 67.5%

Paragon reports new buy-to-let lending up 67.5%

Paragon has reported underlying profits up 10.4 per cent to £63.9m for the six months to the end of March, compared with £57.9m for the first half of 2014.

The lender revealed its buy-to-let pipeline was up 101.5 per cent to £701.4m for the first quarter of 2015, compared with £348.1m for the first half of last year.

Nigel Terrington, chief executive of Paragon, said considerable growth in buy-to-let lending volumes and strong momentum into the second half of the year, complemented by the launch of a number of additional products, contributed to the ongoing diversification of its income streams.

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Notwithstanding the start-up costs of Paragon Bank and new business strain associated with higher volume levels, Mr Terrington said the group delivered record interim profits.

“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.”

The group remains focussed on enhancing shareholder returns, with an interim dividend up 20 per cent and progress on the share buy-back programme.

“Return on equity has improved to 10.8 per cent while maintaining robust and high quality capital levels to support the group’s aspiration for strong future growth,” the statement read.