Specialist finance provider Paragon Banking Group Plc reiterated its full-year guidance on Tuesday following a "strong" first-quarter operating performance, which saw total lending increase 6.8% to £724m.
Paragon said buy-to-let lending was up 0.4% at £425m, while commercial lending advances surged 17.6% to £423.2m. Net loan balances grew 3.9% to £16.5bn at the quarter end.
The FTSE 250-listed firm stated deposit flows through its Spring savings app continued to grow during the three months ended 31 December, rising to £700m at the end of the quarter and now exceeding £800m.
Elsewhere, Paragon said its broader retail deposit book contracted during the period, leaving overall deposits 3.3% lower year-on-year at £15.9bn as it continues to diversify its funding structure.
Paragon also noted that Q1 saw the commencement of its 2026 share buy-back programme, with £11.8m of the total £50m executed during December. After allowing for half of an interim dividend in line with policy and the full 2026 share buy-back, the group's unverified CET1 and total capital ratios was said to have remained strong at 13.3% and 15.0% respectively.
Chief executive Nigel Terrington said: "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 £800m. 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."
Reporting by Iain Gilbert at Sharecast.com