Paragon profits climb as buy-to-let lending soars by over 90%

Buy-to-let lending specialist Paragon has posted a 10% rise in profits following a record year.

Paragon, which closed its books to new business during the credit crunch, said there has been a 90.5% growth in its buy-to-let lending in the year ending September 30.

Paragon said buy-to-let loans stood at £359.8 m (2012: £188.9m) while its pipeline at September 30 was £231.9m (2012: £129.9m).

Announcing its preliminary results, the firm reported profit before tax of £105.4m against 2012’s £95.5m.

Total operating income increased by 4.5% to £177.9m (2012: £170.2 m).

Nigel Terrington, chief executive of Paragon, said: “Paragon has made significant progress in 2013 delivering record profits, whilst also laying the foundations for further sustainable growth in the future.

“Buy-to-let lending volumes have grown by over 90% as landlords feel increasingly optimistic about the housing market and the prospects for the private rental sector.

“At the same time, the group has continued to build on its highly regarded expertise in the debt purchase market, making further significant investments through Idem Capital.

“The group’s actions to increase its warehouse facilities, its successful securitisations and the new retail bond programme all combine to provide substantial capacity to support further growth in our existing business areas.

“With our banking licence application making good progress and our plans for a return to consumer finance lending now well advanced, the group is well positioned for further growth in the year ahead.”