Here is a summary of the trading update from Paragon Banking Group PLC as of July 30, 2024
Paragon Banking Group has released its Q3 trading update, highlighting strong performance and progress against its strategic priorities. The Group has seen strong growth in its loan and retail deposit books, with new business levels running ahead of expectations. The net loan book has increased by 5.0% year-on-year to £15.4 billion.
Nigel Terrington, Chief Executive, attributed the positive results to improving customer sentiment and more favorable economic conditions. The Groups multi-year digital re-platforming program is progressing well, with a new mortgage origination platform set to launch soon.
Financial and operational highlights include strong new business flows in the Buy-to-Let and Commercial Lending divisions, with cumulative advances and volumes above their 2023 levels. Redemption levels remain low, and the Groups net interest margin is strong, reconfirming the guidance for the full year of over 310 basis points.
The Groups retail savings balances have outperformed the market, increasing by 31.8% year-on-year to over £16.2 billion. This has facilitated the repayment of £500 million of TFSME borrowings while maintaining a strong liquidity position.
Unverified capital ratios remain healthy, and the Group reconfirms the guidance given at the half-year results for FY2024. The full-year results for the 12 months ending September 30, 2024, will be released on December 3, 2024.