Nigel Terrington

Paragon reports four-fold increase in development lending

Paragon has reported an increase in new development lending of £126m to £161m.

In its latest half-year results, the specialist bank revealed that development finance had been the strongest performer within its commercial lending division.

This follows its acquisition of Titlestone Property Finance last year.

Paragon’s commercial lending arm — which includes development finance, asset finance, motor finance and structured lending — saw lending increase by 69% to £455m.

Nigel Terrington, chief executive at Paragon (pictured above), said: “We have delivered a strong first half, with increased profits benefiting from good growth in lending and improved margins. 

“This reflects our strategic transformation to become a more broadly based banking group focused on supporting British SMEs and consumers in specialist lending markets. 

“The successful integration of the Titlestone development finance business — together with strong growth in the wider commercial lending division — means that we now offer a stronger and broader proposition to our SME customers.”

Its commercial lending loan book now stands at nearly £1.3bn, following an 89% year-on-year increase.

Richard Doe, managing director of commercial lending at Paragon, added: “Development finance has significantly expanded since the acquisition of Titlestone and is supporting our aim to help SMEs and independent property developers achieve their financial ambitions.

“While a majority of the business has been in the South East of England, our objective is to lend more widely across the UK.”

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