Business
Final Results
Paragon Banking Group PLC reported a strong financial year ending September 30, 2025, with underlying Return on Tangible Equity at 17.5% and a 8.7% increase in total dividend per share to 43.9p, alongside a proposed £50 million share buy-back for FY26. The company achieved record underlying earnings per share of 109.7p, a 4.0% growth in its net loan book to £16.3 billion, and a cost:income ratio of 34.8% despite investments in digital capabilities. Statutory profit before tax rose 1.1% to £256.5 million, and the CET1 ratio remained strong at 13.6%. The launch of the digital savings brand "Spring" and a new digital buy-to-let origination platform were key operational achievements. Disclaimer*
About this update from Paragon Banking Group Plc
[{"type":"text","content":"\n\nRNS Announcement\nParagon Banking Group PLC\n3 December 2025\n \nStrong performance, with 17.5% underlying RoTE, 8.7% dividend growth and new £50 million buy-back announced for FY26\nParagon Banking Group PLC ('Paragon', 'the Group' or 'we'), the specialist lender and banking group, today announces its full year results for the year ended 30 September 2025\n\nThe full unedited text of the results announcement can be accessed at http://www.rns-pdf.londonstockexchange.com/rns/9734J_1-2025-12-2.pdf and via the Paragon Group website at:\nhttps://www.paragonbankinggroup.co.uk/investors/reports-results-presentations\nThe results announcement will also be submitted to the National Storage Mechanism and will shortly be available for inspection at:\nhttps://data.fca.org.uk/#/nsm/nationalstoragemechanism\nThis announcement is made in accordance with DTR 6.3.5R(1A).\n\nNigel Terrington, Chief Executive of Paragon said:\n\"Paragon has delivered another strong performance in 2025, demonstrating the strength and resilience of our specialist model and building on our consistent track record of delivery. We've grown our loan book, maintained excellent cost discipline and delivered record underlying earnings per share of 109.7p, all while continuing to deliver enhanced returns to our shareholders through increased dividends and continued share buy-backs.\nOperationally, we've made significant strides in digitalisation this year. The successful launch of Spring, our new app-based savings brand, and the roll-out of our digital buy-to-let origination platform represent major milestones in our technology transformation. These developments are already delivering tangible benefits for customers and driving efficiency across the Group.\nWe enter the new financial year with good momentum. While the external environment remains uncertain, we see plenty of opportunity ahead in our chosen specialist markets. With a strong capital position, a modern digital platform and a clear strategy, Paragon is well placed to continue building on this success, delivering sustainable growth and attractive returns for our shareholders.\"\n \nFinancial highlights\n· Underlying basic EPS increased 8.5% to 109.7p (2024: 101.1p)*\n· Strong underlying Return on Tangible Equity remains comfortably within target range at 17.5% (2...