**Summary**
Paragon Banking Group PLC announced its strong full-year results for 2025, highlighting a 17.5% underlying Return on Tangible Equity (RoTE), an 8.7% increase in dividends, and a new £50 million share buy-back program for FY26. The group reported record underlying earnings per share (EPS) of 109.7p, a 4.0% growth in its net loan book to £16.3 billion, and maintained a robust capital position with a CET1 ratio of 13.6%.
Key financial achievements include
Underlying basic EPS up 8.5% to 109.7p.
Operating profit before adjusting items slightly increased to £293.9 million.
Pre-provision profits rose 5.9% to £335.8 million.
Statutory profit before tax grew 1.1% to £256.5 million.
Net interest margin of 3.13%ahead of expectations.
Cost efficiency improved with a costincome ratio of 34.8%.
Operationally, Paragon made significant strides in digital transformation, launching its app-based savings brand "Spring" and a digital buy-to-let origination platform. Spring attracted over £600 million in balances by November 2025. Total new lending reached £2.68 billion, with mortgage and commercial lending showing steady growth.
The group also issued its inaugural £500 million AAA-rated Regulated Covered Bond, underscoring its strong liquidity and market confidence. Despite a rise in cost-of-risk to 26 basis points, Paragon remains well-capitalized and positioned for sustainable growth in its specialist markets.
CEO Nigel Terrington emphasized the group’s resilience, digital advancements, and strategic focus, expressing optimism for continued success despite external uncertainties. The final dividend for 2025 was set at 30.3 pence per share, with payment scheduled for March 6, 2026.