Business
Trading Update
Paragon Banking Group PLC reported a strong start to its 2025/26 financial year, with total lending increasing by 6.9% to £724.0 million in the first quarter, driven by a 17.6% rise in Commercial Lending advances to £299.0 million. The Group's savings app, Spring, now holds over £0.8 billion in balances, while net loan balances grew 3.9% to £16.5 billion. Despite a contraction in the broader retail deposit book, overall deposits remain at £15.9 billion. The company reiterated its full-year guidance for net interest margin, new business volumes, operating costs, and return on tangible equity, indicating confidence in continued performance. The Group has also commenced its £50.0 million share buy-back programme, executing £11.8 million in December. Disclaimer*
About this update from Paragon Banking Group Plc
[{"type":"text","content":"\n\nRNS ANNOUNCEMENT\n27 January 2026\n \n \nPARAGON BANKING GROUP PLC\nTrading update\nPOSITIVE START TO FY26: FULL YEAR GUIDANCE REITERATED\n \nParagon Banking Group PLC (\"the Group\" or \"Paragon\") today publishes its trading update based on the business performance from 1 October to 31 December 2025.\nThe Group's trading performance has been in line with the Board's expectations for the first quarter of its 2025/26 financial year and all elements of full year guidance are reiterated.\n \nNigel Terrington, Chief Executive, said:\n\"We delivered a strong operating performance for Q1. Our digitalisation activities continue apace and we have seen further progress with Spring, our new savings app, with balances now in excess of £800 million. Lending volumes and pipelines across our businesses are robust and we are well placed to continue building on our long-term track record of delivery as we reiterate our 2026 full-year guidance.\"\n \nOperational highlights\n· Total lending up 6.9% to £724.0 million (2025 Q1: £677.4 million)\n \n· Buy-to-let lending up 0.4% to £425.0 million (2025 Q1: £423.2 million)\n \n· Commercial Lending advances up 17.6% to £299.0 million (2025 Q1: £254.2 million)\n \n· The Group's buy-to-let pipeline ended the quarter at £722.2 million, 4.4% above its position a year earlier (December 2024: £691.9 million)\n \n· The Group's combined Development Finance pipeline and undrawn commitment balance was 4.4% lower than the 2025 Q1 position at £700.8 million\n \n· Buy-to-let redemptions ran at an annualised redemption rate of 8.2% (2025 Q1: 7.7%), reflecting continued strong retention levels at product maturity and the seasoning of the legacy portfolio\n \n· Buy-to-let arrears were little changed from the 2025 year-end and the credit performance in Commercial Lending continues to normalise as expected\n \n· The Group's net loan balances grew 3.9% to £16.5 billion at the quarter end (December 2024: £15.9 billion) maintaining the growth rate seen during FY25\n \n \nCapital and funding\n \nDeposit flows through the Group's Spring savings app continued to grow during the quarter, rising to £0.7 billi...