Paragon’s commercial lending division achieves strong growth
Paragon’s commercial lending division has achieved strong growth over the past year, the group’s annual results have revealed.
The commercial lending division, which includes development finance, SME lending, structured lending and motor finance, reported a 36% increase in new lending volumes to £968m and a 28% expansion in the loan book to £1.45bn.
Dave Newcombe, managing director of commercial lending at Paragon, said: “Strong growth in Paragon’s lending, particularly to UK SMEs, is truly reflective of our commitment to support British businesses – helping them to grow and achieve their ambitions.”
Overall, underlying profits for the group increased by 5% to £164m for the 12 months to 30 September 2019, up from £157m in 2018.
The combination of the group’s original property development finance team with Titlestone, acquired in July 2018, raised new lending to developers from £137m last year to £363m.
Paragon’s structured lending team, which provides senior debt to developing finance businesses, also had a good year.
The team brought in eight transaction compared to three at the end of 2018, having delivered £50m of net new lending.