Paragon Bank grows development finance lending
Paragon Bank grew full-year new lending in its Development Finance division by 24% to £623.2 million as SME housebuilders and developers delivered much-needed new homes.
During the year to 30 September 2022, the Development Finance division grew its drawn loan book to £719.9 million, up from £608.2 million the year before.
Other highlights during the year included the launch of the division’s Green Homes Initiative, with projects to develop energy-efficient properties, those with an EPC A grade, receiving beneficial funding terms.
By the year end, £64.5 million of new lending facilities had been agreed under the green initiative.
Operating profit before fair value items at Paragon Banking Group rose by 16.4% to £226 million, reflecting the strong performance of the Group.
Paragon Bank Managing Director of Development Finance Neal Moy said:
“This was a strong year, with robust lending growth across the country and a large proportion of repeat business from customers we enjoy a strong relationship with.
We benefit from being part of the Paragon Banking Group and customers know we are committed to the sector, plus have a great deal of expertise to meet their needs.
Demand for new homes remains high, particular from purchasers who favour the quality homes built by smaller housebuilders and property developers.
We broadened our geographical spread during the year, and I was pleased to see customers utilise our Green Homes Initiative to build homes of the highest energy efficiency.”