Paragon Banking Group (PAG) Q1 2026 TU earnings summary

Executive summary

• Trading performance for Q1 FY26 was in line with Board expectations, with full-year guidance reiterated.

• Strong operating performance driven by digitalisation and robust lending volumes.

Financial highlights

• Total lending increased 6.9% year-over-year to £724.0 million.

• Net loan balances grew 3.9% to £16.5 billion compared to December 2024.

• Buy-to-let lending rose 0.4% to £425.0 million; commercial lending advances up 17.6% to £299.0 million.

• Buy-to-let pipeline ended the quarter at £722.2 million, up 4.4% year-over-year.

• Buy-to-let redemptions annualised at 8.2%, up from 7.7% in Q1 2025.

Outlook and guidance

• FY26 guidance for net interest margin, new business volumes, operating costs, and ROTE remain unchanged.

• Buy-to-let lending volume guidance: £1.5–£1.7 billion; commercial lending: £1.2–£1.4 billion.

• Net interest margin expected at 2.9% to 3.0%; operating expenses below £190 million.

• Underlying ROTE guidance in the mid 15–20% range.