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Prices & Quotes - UK Markets - Paragon Banking Group (PAG)

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Share Price:
Up 536.00p
Change Today:
9.00p
Market Cap:
1,360.80m
Sector:
Financial Services

Paragon records 27.7m Covid charges, cancels interim dividend

By Josh White

Date: Wednesday 10 Jun 2020

LONDON (ShareCast) - (Sharecast News) - Paragon Banking Group reported an underlying profit 57.2m in its first half on Wednesday, down from 79.8m year-on-year, as its statutory profit before tax slid to 57.1m from 72m.
The FTSE 250 company posted 27.7m of Covid-19 related charges, consisting of 3.7m for income and 24m of impairments, for the six months ended 31 March.

It said its expected credit loss provision was 30m for the period, rising from 4.9m in the first half of the 2019 financial year.

Specialist buy-to-let advances totalled 694.6m for the period, up slightly from 693.1m, while commercial lending advances came in at 481.3m, rising from 455.3m.

The board declared no interim dividend, but did say a dividend for the full year would be considered at year-end.

Paragon said its capital remained "strong", with a CET1 ratio of 14.4%, compared to 13.7% at the start of the period.

The specialist bank said it had retained "full operational functionality" through the Covid-19 crisis, with over 90% of employees working from home, and authorisation received under the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS) after period end.

It also confirmed the submission of its initial internal ratings-based module with the Prudential Regulation Authority.

Looking ahead, Paragon said reduced demand across the UK economy would lead to decreased lending volumes, which in turn would impact on its future income.

At the current stage, it said it was difficult to predict when lending markets would return to normality.

The company said its "prudent" credit approach, strong balance sheet and management experience had placed it in a "strong position" to meet challenges arising from Covid-19, and to grow lending volumes in its chosen markets when customer confidence returns.

"Our priorities during the outbreak of Covid-19 have been to support our customers and suppliers, protect our people, safeguard our capital base and preserve the long-term value of our business," said chief executive officer Nigel Terrington.

"We reacted quickly and with agility, achieving full operational stability and making all products and services available.

"The group is also providing funding to our SME customers through the UK Government's CBILS and BBLS schemes."

Terrington said that, while it was difficult to predict the full impact of the pandemic, it had made provisions for 27.7m in additional charges, based on "careful" economic modelling and customer analysis.

"The group made strong progress up to the commencement of the UK lockdown, with lending volumes and yields broadly in line with expectations.

"We have a high-quality loan book, 98% of which is secured, and strong capital and liquidity, and our business stands ready to meet the changing needs of our customers throughout this challenging period and into the next business cycle."

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PAG Market Data

Currency UK Pounds
Price 536.00p
Change Today 9.00p
52 Week High 569.50p
52 Week Low 294.00p
Volume 246,469
Shares Issued 253.88m
Market Cap 1,360.80m

Performance Indicators

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What The Brokers Say

Strong Buy 9
Buy 0
Neutral 4
Sell 0
Strong Sell 0
Total 13
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

PAG Dividends

  Latest Previous
  Interim Final
Ex-Div 01-Jul-21 28-Jan-21
Paid 23-Jul-21 26-Feb-21
Amount 7.20p 14.40p

Trades for 23-Jul-2021

Time Volume / Share Price
16:35 88,864 @ 536.00p
16:29 20 @ 536.00p
16:29 166 @ 536.00p
16:29 250 @ 537.00p
16:29 20 @ 536.00p

PAG Key Personnel

CEO Nigel S Terrington
CFO Richard Woodman
Chair Fiona Clutterbuck