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Paragon reveals £30m profit

The Paragon Group has revealed pre-tax profits of more than £30m over the last quarter.

Paragon’s latest statement has revealed profits of £30.2 million. Pre-tax profits included of an “exceptional profit” of £4.6 million on the purchase of group securitised bonds over the last quarter.

The group, which includes Paragon Mortgages, says the proportion of its buy-to-let portfolio three months or more in arrears improved slightly to 1.71 per cent, compared to 1.74 percent in the last quarter.

The buy-to-let lender says the impact of the funding shortage on the availability of competitor products, combined with its customer retention programme has served to keep the level of redemptions low.

Paragon has purchased £23.2m nominal value of A-rated, AA-rated and AAA-rated securities at a total cost of £11.7m, creating a profit of £11.5m over the last six months.

Paragon chief executive Nigel Terrington says: “We remain financially strong and, as has been demonstrated in recent months, and continue to manage our portfolio carefully in the weakened economic environment.

“The group continues to work on a range of income generating initiatives through additional services to landlords, third party administration, portfolio acquisitions and debt purchase.”

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