(Alliance News) - Paragon Banking Group PLC on Tuesday backed its full-year guidance, as volumes, margins and costs remained in line with expectations over the third quarter.
The Solihull, West Midlands-based mortgage and loan provider's third quarter trading update was based on business performance between October 1 and June 30.
For the year to date - equivalent to the third quarter end - total advances were GBP2.3 billion, up 0.9% from GBP2.2 billion a year prior. Mortgage lending advances were GBP1.4 billion, up 7.8% from GBP1.3 billion.
Net loans rose 4.8% to GBP14.7 billion from GBP14.0 billion year-on-year.
According to Paragon, new business levels over the quarter were in line with its expectations, though interest rate and swap volatility led to market disruption and reduced application flow, slowing the rate of pipeline increases.
Retention levels continued to improve as expected. Buy-to-let redemption levels fell further in the third quarter, taking the annualised rate of 11% reported at the interim to the current annualised rate of 9.4%.
Looking ahead, Paragon reaffirmed full-year guidance given earlier in the year. It still expects mortgage lending advances between GBP1.75 billion and GBP1.90 billion, commercial lending advances between GBP1.1 billion and GBP1.3 billion, and operating costs around GBP170 million.
Paragon Banking shares were trading 1.0% lower at 546.00 pence each in London on Tuesday morning.
By Holly Beveridge, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Paragon Group (PAG)