Paragon Group has announced its interim results for the period 1 October 2013 to 31 March 2014.

The Group reported pre-tax profits of £58.2 million for the half year, a 19.3% increase on the same period last year (H1 2013: £48.8 million).

Buy-to-let lending was up 167% on the same period last year, with £269.3 million in loans advanced.

The buy-to-let business is expected to significantly increase during the second half of the year with a pipeline of new business at 31 March 2014 of £348.1 million.

During the first half of the year Paragon was granted its banking licence and subsequently launched Paragon Bank in February. The Group also completed its latest securitisation deal, PM19, in March.

John Heron (pictured), director of mortgages, said: “It has been an excellent start to the year for the Group, with continued growth and progress made in all areas of the business.

“Thanks to a material improvement in the scale and the cost of our funding facilities we have been able to compete much more effectively. As a result we have seen a surge in buy-to-let lending activity as the wider market has gained momentum, and we are positioned well for future growth, particularly with the extension of our warehouse facility from £450 million to £550 million.

“Now is an exciting time for both the mortgage business and the wider Group as we continue to develop our three core business streams. With a more diverse funding capability, and the launch of Paragon Bank, the start of 2014 has been something of a milestone for the Group.”