Paragon Bank’s parent company, The Paragon Group of Companies, has today released its financial results for the year ended 30 September 2016, announcing a 9.1% increase in full-year, underlying profits to £146.9 million (2015: £134.7 million).
Significantly, Paragon Bank delivered its maiden profit just two and half years since launch in February 2014, contributing £11.6 million to the Group’s result. Paragon Bank savings deposits, which now exceed £2 billion, have been used to fund strong growth in the bank’s lending across mortgages, car finance, personal loans, residential property development and asset finance for small and medium-sized businesses.
Paragon Bank’s entry into SME lending marked a significant milestone during the year and was achieved through the acquisition of Five Arrows Leasing Group in November 2015. Since then, Paragon Bank has made £144.3 million of new advances to help businesses across the UK fund their growth ambitions, financing a wide range of assets from vehicles and construction equipment to broadcast and veterinary apparatus. To increase reach and accelerate business lending further in the coming year, Paragon Bank acquired Premier Asset Finance, a UK-wide broker of asset finance in September 2016.
During the year, Paragon Bank’s savings range was also boosted by the introduction of ISAs.
Richard Doe, Managing Director of Paragon Bank, said:
This has been a tremendous twelve months for Paragon Bank. Not only have we continued to attract a growing number of savings customers with our consistently competitive, simple and straightforward accounts, we have also made a successful entry into business lending, broadening competition and choice for UK business customers who need new funding to achieve their goals.