Latest news with #JohnPhillipou
Yahoo
a day ago
- Business
- Yahoo
Paragon Bank logs 7.3% growth in new SME lending loans
Paragon Bank has reported a 7.3% increase in new loans in its SME lending business during the first half of its financial year. For the six months ending 31 March 2025, Paragon registered £247m ($334m) in SME lending loans, compared with £230.2m in the same period a year ago. Asset finance, a key component of the division, saw an 11.1% growth to £169.9m, surpassing the market average of 6.4%. Additionally, the period marked Paragon's first loans under the UK Government's Growth Guarantee Scheme, with £18.3m in loans written under this initiative. The broker portal, which was launched two years ago as part of Paragon's digitalisation strategy, has continued to positively impact the business. Nearly 60% of applications are input directly, up from just under 50% in the prior year. The system currently manages almost 90% of new SME lending business. The new system utilises various tools to support decision-making, with one in three cases on the platform eligible for auto-decisions. This allows specialist underwriters to focus on more complex cases. These changes have reduced processing time from application to approval by 60% year-on-year, the company highlighted. Paragon SME lending managing director John Phillipou said: 'Despite a difficult environment for SMEs, with increased costs and the disruption of global events, they continue to show ambition and resilience, and we were pleased to record an increase in lending, particularly within asset finance. 'Additionally, our broker portal continues to drive improved performance, with more applications going through the system, plus conversion and approval rates increasing. We have commenced the replatforming of our back-end system, which will drive further efficiencies and improved customer experience.' Paragon posted a 5.2% growth in pre-provision profits and a 2.1% growth in underlying profits, which increased to £149.4m. The loan book climbed by 4.9% to £16bn, with lending rising 11.4% to £1.38bn, including growth in development finance and buy-to-let mortgages. Last month, Paragon raised the automatic decision-making threshold for SME lending from £100,000 to £150,000, which the lender describes as 'reflecting ongoing investment in technology' and a deepening focus on faster credit delivery. "Paragon Bank logs 7.3% growth in new SME lending loans" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Broker channel drives lending at Paragon Bank surge amid £6.5m motor finance provision
Paragon Banking Group leaned on strong broker-led SME activity and robust mortgage lending to deliver a 26.7% surge in pre-tax profits in the first half of its financial year, helping to absorb a £6.5 million provision related to motor finance complaints. Pre-tax profit rose to £149.4 million for the six months to 31 March 2025, up from £118 million in the same period last year. The FTSE 250 lender attributed much of the growth to a 4.9% increase in its loan book, as well as a sharp uptick in mortgage and SME lending via broker channels. Paragon's SME Lending business reported a 7.3% rise in new loans to £247 million, while the overall SME loan book grew 9.4% to £853.1 million. Asset finance, accounting for the largest share of the SME division, jumped 11.1% to £169.9 million, well ahead of the market average of 6.4%. Managing Director of SME Lending at Paragon Bank, John Phillipou, said the bank's digital broker portal was a key driver of performance. 'More applications are going through the system, plus conversion and approval rates [are] increasing,' he said. Nearly 60% of SME loan applications were submitted directly by brokers, with the portal now handling close to 90% of new SME lending. One in three cases are eligible for automatic decisions, allowing underwriters to focus on complex cases. The digitalisation push has slashed average approval times by 60% and nearly halved the time from application to payout. Phillipou added that Paragon had also issued £18.3 million in loans under the Government's new Growth Guarantee Scheme during the period. British Business Bank hits £5bn in structured guarantee programmes Paragon half-year results Group-wide, lending grew 11.4% to £1.38 billion, boosted by a 25.1% rise in mortgage volumes to £810 million. The increase came as borrowers rushed to complete purchases ahead of Chancellor Rachel Reeves' stamp duty threshold reductions. Meanwhile, commercial lending slipped 3.7% to £570 million, largely due to timing delays in structured finance repayments. Despite the strong performance, Paragon took a £6.5 million provision related to its motor finance division, amid a wider industry fallout over historic commission arrangements. The case, now before the UK Supreme Court, could have far-reaching implications for banks if prior commissions paid without customer consent are ruled unlawful. While Paragon's exposure remains small relative to peers, Lloyds has provisioned £1.2 billion, the lender acknowledged the uncertainty ahead. Operating expenses fell slightly to £89.3 million, and the bank maintained its net interest margin at 3.13%, showing resilience in a tight lending environment. Paragon also extended its share buyback programme by £50 million, taking the total for the year to £100 million. Chief Executive Nigel Terrington said the bank had 'strong momentum' and a 'resilient business model,' adding: 'We are well placed to navigate the evolving external environment and remain optimistic about the remainder of the financial year and beyond.' "Broker channel drives lending at Paragon Bank surge amid £6.5m motor finance provision" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
23-05-2025
- Business
- Yahoo
Paragon Bank raises automated lending threshold for SMEs
Paragon Bank has raised the automatic decision-making threshold for SME lending from £100,000 to £150,000, in a move the lender describes as 'reflecting ongoing investment in technology' and a deepening focus on faster credit delivery. According to a press release, the change means a greater proportion of loan applications will be eligible for quicker automated approvals, provided they relate to hard assets under hire purchase or finance lease agreements and are valued at £150,000 or less. The increase is part of Paragon's broader digitisation strategy, aimed at enhancing efficiency through automation, artificial intelligence and data analytics, the press release said. The bank said the shift would 'support more SMEs, more quickly', while continuing to uphold 'robust credit controls'. According to John Phillipou, Managing Director of SME Lending, the update is underpinned by improvements to the bank's digital portal and data-driven credit tools. He said the learnings from automated decisions are also being used to 'refine our system over time', improving both speed and accuracy across the board. Paragon's decision comes amid changing dynamics in the UK's SME finance market. In 2024, challenger and specialist banks accounted for 60% of gross lending to small businesses, according to the British Business Bank – the highest level recorded to date. The data points to a broader retreat by traditional banks from SME lending and a growing role for non-traditional lenders. Paragon said its digital transformation programme is also aimed at enhancing back-office resilience and securing the long-term sustainability of SME finance delivery. "Paragon Bank raises automated lending threshold for SMEs" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-03-2025
- Business
- Yahoo
Paragon Bank's SME Lending arm reduces deal processing times by 60%
Paragon Bank's SME Lending division has achieved a reduction in its deal processing times, cutting the average application processing time by 60% in 2024. This improvement is attributed to advancements in the division's technological and operational capabilities, leading to an increase in its conversion rate. The reduction in processing time, from application receipt to approval, is primarily due to the expansion of the division's automated decision engine. This system allows for certain applications to be auto-approved and provides an 'assisted underwriting' outcome on every application, the company explained. The recent expansion of the division's credit and risk team has also contributed to quicker decision-making. This enhancement enables the sales and underwriting team to dedicate more time to complex deals, further improving efficiency. According to Paragon, the accelerated processing has led to 'record' conversion rates for the company, with the division achieving a 12% annual growth in 2024. SME Lending remains a key growth area for Paragon, with the division reporting over £480m ($620.89m) in lending last year, marking a 7.3% increase from the year before. Paragon SME Lending managing director John Phillipou said: 'We are delighted that the continued development of our technological capabilities, and the expansion of our Credit and Risk team is enabling us to deliver a significantly improved level of service for our Broker and Vendor partners, as well as our customers. 'We have some really exciting plans for the SME Lending division at Paragon over the coming years, and with the project to deliver our new back-office system now underway, we aim to continue to improve the service we are able to offer and help more SME businesses than ever before.' In a recent development, Paragon Bank's SME Lending division provided TSL Contractors, a Scottish building, civil engineering, construction, and aviation company, with a £2m funding facility. This funding supports TSL's expanded workload and includes an Airbus helicopter acquisition. The deal was led by Alison Jones, head of aviation in the specialist lending team, under the leadership of Matt Bass, for Paragon's SME Lending division. "Paragon Bank's SME Lending arm reduces deal processing times by 60%" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
