Paragon Banking delivers 'another strong performance' in Q3

Finance provider Paragon Banking Group said on Wednesday that it had delivered "another strong performance" in the three months ended 30 June, leading it to reconfirm full-year guidance.

Paragon said year-to-date advances had risen 16.7% to £2.2bn, with mortgage lending advances rising 7.5& to £1.3bn and commercial lending advances improving 32.3% to £900.0m. Net loans grew 7.2% to £14.0bn.

The FTSE 250-listed group's buy-to-let pipeline shot up 46.2% to £1.3bn, while its development finance pipeline was flat year-on-year at £700.0m.

Paragon also reiterated its full-year guidance for more than £18.0bn in mortgage lending advances, £1.2bn in commercial lending advances, operating costs in the "low £150 millions" and a net interest margin increase of over 20 basis points.

Chief executive Nigel Terrington said: "Paragon has delivered another strong performance, with continued momentum in new business flows and improving margins driving robust revenue growth, whilst maintaining a tight cost focus.

"With strong levels of capital and an exemplary credit performance, we are well positioned to deal with any economic weakness that emerges. We continue to deliver against our strategy to the benefit of all our stakeholders and are particularly excited about the benefits our digitalisation programme will create."

As of 0805 BST, Paragon shares were up 1.53% at 529.50p.

Reporting by Iain Gilbert at Sharecast.com