Paragon Banking Group Q1 FY2025 Trading Update

Reporting Period: 1 October – 31 December 2024

Key Highlights

1. Lending Performance

  • Total New Lending: £677.4 million (up from £610.7 million in Q1 FY2024).
    • Buy-to-Let Lending: £423.2 million (significant increase from £336.3 million).
    • Commercial Lending: £254.2 million (slightly lower than £274.4 million, primarily due to timing factors in structured lending).

2. Pipeline Growth

  • Buy-to-Let Pipeline: £691.9 million, up 23.6% from £559.6 million a year ago.
  • Development Finance:
    • Value of new business pipeline: +33.5% YoY.
    • Undrawn facilities: +16.1% YoY.

3. Portfolio & Retention Metrics

  • Redemption Rates: Increased to 7.7% annualised (up from 6.4% in Q1 FY2024), reflecting strong customer retention.
  • Arrears Performance: Buy-to-let arrears (3+ months) dropped to 44 basis points, down 13 bps YoY.

4. Net Loan Growth

  • Net Loan Balances: Increased by 1.0% during the quarter to £15.9 billion (+5.5% YoY).