Paragon Bank has reported an “encouraging” start to its financial year after posting growth in new lending volumes.

New lending volumes across the bank in its Q1 trading period, covering the quarter to 31 December 2024, totalled £677.4m, up from £610.7m a year earlier.

Buy-to-let (BTL) lending reached £423.2m, up from £336.3m last year. Commercial Lending advances, however, slipped to £254.2m in the quarter, down from £274.4m last year, with Paragon putting the reduction down to “timing differences” in its structured lending business.

Paragon said the trading performance was in line with its board’s expectations for Q1 and that it would maintain all elements of its full year guidance.

The bank also revealed that its net loan balances grew by 1% to £15.9bn during the quarter –
up 5.5% from the December 2023 level – maintaining the growth rate it saw across FY24.

Paragon chief executive, Nigel Terrington, said: “The first quarter of our new financial year has continued to see good progress with encouraging new business flows and margins running above expectations.

“The benefits of our digitalisation programme remain evident in both demand and efficiency, and we will roll-out further technology-driven changes during 2025.

“The group remains confident in the guidance given for the full year and our strong capital levels mean we are well-positioned to continue delivering strong returns for our shareholders and further support for customers.”

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