Paragon Banking Group (PAG) Q3 2025 TU earnings summary

Executive summary

• Loan balances increased 4.8% year-over-year, with strong deposit growth driven by the new Spring App launch.

• Mortgage advances for the nine months reached £1.1 billion, slightly above the previous year.

• Commercial lending volumes up 6.6% year-over-year, though overall advances fell 1.5% due to net repayments.

• Customer retention remained robust, with buy-to-let redemption rates stable at 7.0%.

Financial highlights

• Net loan book rose 1.1% sequentially and 4.8% year-over-year to £16.2 billion.

• Retail savings balances increased 1.5% during the quarter to £16.0 billion.

• CET1 capital ratio at quarter end was 13.6%, with TCR at 15.4%, both slightly down from H1 2025.

Outlook and guidance

• Full-year mortgage lending advances expected around £1.6 billion, at the lower end of previous guidance.

• Commercial lending advances guidance unchanged at £1.2–£1.4 billion.

• Net interest margin (NIM) expected to remain over 300 basis points.

• Operating expenses to stay below £185 million; ROTE guidance unchanged at 15–20%.

• Share buy-backs up to £100 million for FY 2025.