Paragon Banking Group reports solid Q3 with loan and deposit growth

Published 29/07/2025, 07:52
© Reuters.

Investing.com -- Paragon Banking Group (LON:PAG) on Tuesday delivered a solid third quarter for 2025, adding 1.1% to its loan book and 1.5% to deposits, while maintaining most of its full-year guidance.

The bank now expects its full-year mortgage advances to be at the lower end of its previous guidance, targeting gross flow of approximately £1.6 billion for fiscal year 2025, compared to the previous range of £1.6-1.8 billion.

Despite this adjustment, the projected figure would still imply around £800 million in the second half of 2025, a similar run-rate to the first half and representing a pickup in the fourth quarter compared to Q3.

Net of redemptions and internal retentions, Paragon saw 1.1% growth across its loan book in Q3, bringing the year-to-date total to 2.9%. This puts the bank on track to achieve approximately 4% growth for the full year, broadly in line with consensus expectations.

The company reported that its development finance book "continues to generate impairment requirements," though no new cases entered default in Q3. The additional impairments primarily came from increased coverage rather than new defaults.

The bank maintained its full-year net interest margin guidance of over 3.0% for fiscal year 2025, while costs are still expected to be less than £185 million.

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