Paragon's first half profits rise on buy-to-let demand

20th May 2014 09:52

- Profit rises 20.9 per cent- Demand for buy-to-let loans boosts earnings- Dividend lifted 25 per centParagon Group reported a 20.9 per cent rise in underlying pre-tax profit to 57.9m pounds in the first half, boosted by a rise in loan portfolios and demand for buy-to-let loans. The parent of buy-to-let lender Paragon Mortgages said it granted loans worth £269.3m during the first half, compared to £102.m the year before as the group benefitted from an uplift in the rental market. Total operating income jumped 11.3% to £96.4m and earnings per share grew 19% to 15p. Chief Executive Nigel Terrington said the company remains "well positioned for further growth in the second half of the year".In February, Paragon Bank launched its first products in the car finance sector which Terrington said marks "a milestone in the on-going diversification of the Group's income streams and funding sources". Terrington added that while the buy-to-let market has grown in recent years, it remains materially below its pre-financial crisis peak, highlighting additional growth opportunities in the future.The interim dividend rose by 25% to 3p.RD