Paragon Banking Group plc has posted a year-on-year increase in profits of 8.7% to £79.8 million for the first half of 2019.
It also revealed growth in lending volumes of 30.2% to £1.29 billion.
Nigel Terrington (pictured), chief executive of Paragon, said: “We have delivered a strong first half, with increased profits benefiting from good growth in lending and improved margins. This reflects our strategic transformation to become a more broadly based banking group focussed on supporting British SMEs and consumers in specialist lending markets.
“In buy-to-let, we have continued to grow lending adapting to the changing market dynamics. Professional landlords are becoming the backbone of the UK private rented sector, where we are well placed to address their complex needs.
“The successful integration of the Titlestone development finance business, together with strong growth in the wider commercial lending division means that we now offer a stronger and broader proposition to our SME customers. This, together with the changing mix of buy-to-let business, has helped to create a structural improvement in the Group’s net interest margin which will continue during the rest of the year and beyond.
“The half year performance provides further evidence of the success of Paragon’s five-year transformation into a specialist banking group. Our diversification will enable us to continue to grow our customer base and deliver improving returns to shareholders.”
