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Paragon profits from a volatile lending market

A share buyback, increased dividend and higher returns make the buy-to-let lender a stand-out performer in the banking sector
December 6, 2023
  • Net interest margin above 3 per cent 
  • Professional landlords look resilient 

Paragon Banking Group (PAG) handed out the Christmas goodies in its full-year results with a £50mn share buyback, a 30 per cent dividend increase and a net interest margin of 3.09 per cent that came in well ahead of what anyone had forecast. Investors took the cue to bid up the shares on the day by 8 per cent, which represented their best individual performance for the year. In short, specialist banks – in Paragon’s case with a focus on professional buy-to-let landlords – seem to be far outperforming the large high-street players.  

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