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Paragon Banking Group PLC on Tuesday reported continued progress in the first nine months of its financial year, but said it now expects Mortgage Lending advances for the full-year in the lower end of its prior guidance range. The Solihull, England-based bank said its net loan book improved 4.8% to £16.2 billion in its third quarter that ended June 30 from £15.4 billion a year prior, with it rising 1.1% during the quarter. Paragon’s buy-to-let pipeline totalled £800 million, up 28% from its March 2025 level, and compared to £888.5 million reported a year prior. Paragon noted that the pipeline growth primarily occurred towards the end of the period, and said as a result, full-year volumes are expected to be around the lower end of its previous guidance. It added that this should support a more favourable start to the new financial year. Mortgage advances for the nine months that ended June 30 reached £1.1 billion, up marginally from a year prior. Paragon said commercial lending volumes remain in line with expectations, with combined motor, asset finance and development finance advances for the first nine months up 6.6% on-year. However, Paragon revised its Mortgage Lending advances guidance down to around £1.6 billion for the full-year, from between £1.6 billion to £1.8 billion guided previously. All other guidance remained unchanged. Shares in Paragon fell 9.0% to 866.50 pence on Tuesday morning in London. ‘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, which was launched to the public during the quarter,’ said Chief Executive Nigel Terrington. ‘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.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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