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Paragon Banking Group PLC on Tuesday posted lower profit in its first half, due to impairment charges, but upped its interim payout nonetheless. The mortgage lender and provider of personal loans and business financing, booked pretax profit of £133.2 million for the six months ended March 31, down from £140.1 million on-year. On an underlying basis, pretax profit fell to £145.7 million from £149.4 million. This reflected higher impairment charges than the first half of the previous year, with Paragon setting aside £21.5 million for impairments, compared with £15.3 million. Net interest income rose 2.2% to £253.4 million from £247.9 million. Paragon’s net interest margin was 3.08% during the first half, down from 3.13% a year earlier, and ahead of expectations. Its CET1 ratio stood at 13.5% at March 31, compared to 14.2% on-year. Statutory return on tangible equity was 16.1%, versus 16.3% on-year. Tangible net asset value per share was £7.58 at March 31, up from £7.14 a year earlier. Paragon declared an interim dividend of 15.1 pence per share, up 11% from 13.6p a year earlier. It has also extended its buyback programme by £50 million, with buybacks expected to total £100 million in financial 2026. The company noted that its digital banking offering, Spring, has continued to beat its expectations. It sees itself as ‘well placed to support’ customers, despite volatile trading conditions. Chief Executive Nigel Terrington commented: ‘Paragon delivered a strong performance in the first half, reflecting our long-term, disciplined approach to managing the business.’ Terrington added: ‘Whilst we are mindful of the volatile external environment, our deep experience, strong capital ratios and ongoing technology improvements, mean that we remain well placed to support our customers, deliver sustainable growth and capitalise on any opportunities that may arise.’ Paragon shares were down 0.1% at 737.00 pence on Tuesday morning in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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