Paragon Banking Group recorded £1.9bn of new lending across all business lines in the nine months to 30 June 2019.
Paragon’s Commercial Lending division, which includes development finance, asset finance, motor finance and structured lending, has grown its new lending to £710m, up 58% from the previous year.
Paragon said it had strengthened its asset finance and development finance divisions. The development finance business has enhanced its product range following the acquisition of Titlestone Property Finance last year. Since then, Paragon has funded multiple projects in the South-East of England and has revealed plans to expand its services to small and medium sized property developers throughout the UK.
Paragon’s retail savings deposits rose to £6.1 billion at the quarter end.
Richard Doe, managing director of Commercial Lending at Paragon, said: “We have delivered another strong quarter of lending growth. While the economic backdrop continues to be uncertain, we also see a great deal of opportunity in specialist markets. We remain committed to ensuring that British SMEs get the funding they need to grow their businesses.”
Outside of Commercial Lending, the Group saw continued growth in mortgages, with its buy-to-let pipeline rising from £711 million to £733 million over the quarter. Growing appetite from professional landlords saw Paragon increase its share of the market with 89% of completions being from complex landlords, compared to 76% in 2018.
In May, Paragon’s half-year results to 31 March 2019 showed a 29% year-on-year growth in asset finance lending to £211m for the period.
According to the company, asset finance, part of Paragon’s Commercial Lending division, retained its position in its core hard asset market during this period but had also expanded into financing soft assets.
Asset finance at Paragon has expanded its product range through a broker channel and direct to customers product and now covers manufacturing, printing, business equipment, technology, media, aviation, construction, transportation and legal practice finance. There is also working capital funding for SMEs through invoice discounting and factoring.