(Alliance News) - Paragon Banking Group PLC on Wednesday announced a new share buyback and reported healthy annual earnings.
The Solihull, West Midlands-based mortgage and loan provider reported total operating income of GBP466.0 million for the year ended September 30, up 19% from GBP393.0 million.
Pretax profit declined by 52% to GBP199.9 million from GBP417.9 million. Its bottom line was hurt by GBP77.7 million worth of fair value losses, compared to GBP191.9 million worth of gains a year prior. On an underlying basis, profit surged 25% to GBP277.6 million.
Paragon Banking shares rose 10% to 541.05 pence each on Wednesday morning in London.
The company highlighted that its total new lending declined to GBP3.01 billion from GBP3.21 billion a year ago, though its net loan book grew by 4.7% to GBP14.9 billion from GBP14.2 billion. Further, it said that retail deposits jumped 24% to GBP13.3 billion from GBP10.7 billion.
"We have today announced a further GBP50.0 million share buy-back for the 2024 financial year. Reflecting the sustained performance of the group, strength of our capital ratios and liquidity level, since 2015, the group has returned over GBP948.5 million to shareholders via share buybacks and dividends," Chief Executive Nigel Terrington said.
Paragon lifted its total dividend by 31% to 37.4 pence from 28.6p. It lifted its final dividend by 38% to 26.4p from 19.2p.
Looking ahead, the company noted "further progress on delivery of digitalisation strategy, with benefits already available to customers and intermediaries, helping to drive operational efficiencies".
By Tom Budszus, Alliance News slot editor
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Paragon Group (PAG)