LONDON (ShareCast) - (Sharecast News) - Specialist bank Paragon Banking posted a solid Q3 trading update on Tuesday, with deposit growth buoyed by the launch of its new Spring app, but warned that FY mortgage lending advances would likely be at the lower end of previous guidance.
Paragon said loan balances were up 4.8% year-on-year, while deposits grew thanks to a strong showing from its Spring app - the performance of which exceeded expectations, pushing retail savings up 1.5% and earning top-tier customer feedback.

The FTSE 250-listed firm said mortgage advances hit £1.1bn for the nine months ended 30 June, slightly ahead of the prior year, although it noted that stamp duty disruption weighed on completions.

Paragon said its buy-to-let pipeline surged 27.6% from March, while commercial lending volumes rose 6.6%, and net repayments on structured credit dragged total advances down 1.5%. Arrears ticked up slightly in buy-to-let, while legacy development loans continued to necessitate impairments.

While Paragon's FY guidance remained largely unchanged, mortgage lending advances were now expected to come to roughly £1.6bn, which was at the lower end of its previous £1.6bn to £1.8bn guidance.

Chief executive Nigel Terrington said: "The nine months to June 2025 have seen another strong trading period for the group, with loan balances up 4.8% from Q3 2024 and deposit growth supported by the take-up of our new Spring App.

"The momentum in our business and the resilience of our business model means we are well-positioned to continue supporting our customers and delivering strong returns for our shareholders."

As of 1020 BST, Paragon shares had slumped 9.77% to 859.00p.







Reporting by Iain Gilbert at Sharecast.com

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