Paragon’s motor finance loan assets were £163m as of September 2017, up 71% year-on-year.
The business, which operate in the hire and lease segments while forgoing PCP, saw new lending grow 50.4% compared to 2016, to £120m. Paragon said the growth, which it attributed to an expansion of the distribution network and a foray into vehicles other than cars, was expected to cool down “as the business becomes more mature”.
Average yield for motor finance contracts was 5.13%, slightly up from 4.85%. The average balance for the arm throughout the 12 months was £125.7m, 74% higher than in 2016.
Overall profits for Paragons’ commercial lending division, which includes asset, motor and development finance, totalled £14.1m, up 56% from last year.
Julian Rance, director of motor finance at Paragon, said: “We’ve stepped up business over the last twelve months, deepening our relationships with existing introducers, developing our contacts with new partners and introducing finance for a broader range of assets.
“Our targeted approach has allowed us to focus our expertise on specialist segments where we’ve identified scope to boost competition through more thoughtful underwriting and a more flexible approach.”