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First half motor finance steps up a gear at Paragon

  • Motor finance lending up by 39% to £70 million in the first six months
  • Loan balances approach £200 million
  • Continued focus on hire and lease purchase segments

Paragon Banking Group’s first half results announced today show a strong increase in motor finance lending, up 39% to £70 million compared with the same period last year.

Just over four years since launch of its motor finance proposition, Paragon’s loan balances reached £195 million at 31 March 2018, up from £124 million twelve months ago and moving close to the £200 million mark.

Operating in the hire purchase and lease purchase segments of the market, with no exposure to PCP products, Paragon continued to broaden its distribution among brokers and dealers based in the UK.

Alongside new and used cars, the business is carefully directed to address specialist propositions including funding for less mainstream vehicle types, such as LCVs and motorhomes.

Overall underlying half-year profits for Paragon Banking Group grew by almost 5% to £73 million, up from £70 million in the first half last year.

Julian Rance, Motor Finance Director at Paragon said:

“Brokers and dealers value our focused service proposition, with direct access to underwriters allowing us to work together to deliver more thoughtful and flexible deal structures tailored to customer needs. By expanding our proposition to include LCVs and motorhomes we have added welcome choice and competition in these niche areas of the market.”

24 May 2018

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551