Latest news with #ParagonBankingGroup
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
14-02-2025
- Business
- Yahoo
3 UK Dividend Stocks Offering Up To 5.7% Yield
The United Kingdom's stock market has recently faced turbulence, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting ongoing global economic challenges. In such a volatile environment, dividend stocks can offer a degree of stability and income potential for investors seeking to navigate uncertain markets. Name Dividend Yield Dividend Rating Keller Group (LSE:KLR) 3.57% ★★★★★☆ OSB Group (LSE:OSB) 7.83% ★★★★★☆ Dunelm Group (LSE:DNLM) 7.83% ★★★★★☆ Man Group (LSE:EMG) 5.92% ★★★★★☆ DCC (LSE:DCC) 3.71% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.80% ★★★★★☆ NWF Group (AIM:NWF) 4.76% ★★★★★☆ James Latham (AIM:LTHM) 7.28% ★★★★★☆ Grafton Group (LSE:GFTU) 4.00% ★★★★★☆ RS Group (LSE:RS1) 3.36% ★★★★★☆ Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener. We'll examine a selection from our screener results. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Paragon Banking Group PLC offers financial products and services in the United Kingdom, with a market capitalization of £1.57 billion. Operations: Paragon Banking Group PLC generates revenue from its Mortgage Lending segment at £280.50 million and Commercial Lending segment at £115.20 million in the United Kingdom. Dividend Yield: 5.1% Paragon Banking Group's dividend payments are well-covered by earnings, with a payout ratio of 45.6%, and cash flows, reflected in a low cash payout ratio of 3.6%. Despite an increase in dividends over the past decade, their track record remains volatile. Recent financials show net income growth to £186 million for the year ended September 2024. The company is trading at good value compared to peers but offers a lower yield than top UK dividend payers. Click to explore a detailed breakdown of our findings in Paragon Banking Group's dividend report. Our valuation report here indicates Paragon Banking Group may be undervalued. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Plus500 Ltd. is a fintech company that provides technology-based trading platforms across Europe, the United Kingdom, Australia, and internationally, with a market cap of £2.08 billion. Operations: Plus500 Ltd. generates revenue primarily through its CFD Trading segment, which amounts to $750.80 million. Dividend Yield: 5.5% Plus500's dividends are well-covered by earnings, with a payout ratio of 24.9%, and cash flows, indicated by a cash payout ratio of 36.5%. Despite dividend growth over the past decade, payments have been volatile. The stock trades at 35.8% below estimated fair value and offers good relative value compared to peers; however, its yield of 5.52% is slightly below the top UK dividend payers' threshold of 5.7%. Click here to discover the nuances of Plus500 with our detailed analytical dividend report. Insights from our recent valuation report point to the potential undervaluation of Plus500 shares in the market. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: TBC Bank Group PLC operates in Georgia, Azerbaijan, and Uzbekistan, offering banking, leasing, insurance, brokerage, and card processing services to both corporate and individual clients with a market cap of approximately £2.21 billion. Operations: TBC Bank Group PLC generates revenue primarily from its Georgian Financial Services segment, which accounts for GEL 2.28 billion, and its operations in Uzbekistan, contributing GEL 336.77 million. Dividend Yield: 5.8% TBC Bank Group's dividends are well-covered by earnings, with a payout ratio of 31.6%, and they have been stable over the eight years of payments. The company recently announced a proposed dividend increase for 2024, subject to shareholder approval. Earnings grew by GEL 159.87 million last year, supporting dividend sustainability. TBC trades at a significant discount to estimated fair value and offers an attractive yield of 5.78%, ranking among the top UK dividend payers despite high bad loans at 2.2%. Delve into the full analysis dividend report here for a deeper understanding of TBC Bank Group. Upon reviewing our latest valuation report, TBC Bank Group's share price might be too pessimistic. Delve into our full catalog of 60 Top UK Dividend Stocks here. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:PAG LSE:PLUS and LSE:TBCG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
