Paragon Q1 profits grow as buy-to-let lending picks up

31st Jan 2014 08:14

- Operating profits up 13.5 per cent- Lending increased 'significantly' in Q1- Banking application process 'well advanced'The Paragon Group of Companies saw its share price surge on Friday after saying that new buy-to-let lending increased 'significantly' during its first quarter.The buy-to-let mortgages and loans provider said that its financial performance during the three months to December 31st "remained strong" and in line with expectations.Operating profits before fair value items rose 13.5% year-on-year to £26.9m from £23.7m. The loan portfolio performed well during the period, the company said, with loan completions rising threefold year-on-year to £140.2m.Meanwhile, the pipeline of new business at the end of 2013 amounted to £222.5m, "which augurs well for volumes in the second quarter", it said.The company, which has applied to regulators to set up a banking division to take deposits and make car and second-mortgage loans, said that the application process and preparations are "well advanced".It expects to launch the bank during the current quarter but will provide further information at a later date.The stock was up 5.4% at 366.8p by 08:35 on Friday morning.BC