An interim management statement said redemptions across the group’s existing loan books remain low, while customer payment performance in both the buy-to-let and secured consumer loan businesses continues to be superior to industry data.
At 31 December 2010 arrears over three months on the buy-to-let portfolio, including the portfolio acquired in September 2010, were 83bp (76bp excluding the acquired portfolio), continuing the downward trend in the percentage of the portfolio experiencing payment difficulty.
The statement also announced generating operating profits of £18.1 million and pre-tax profits, inclusive of a credit of £0.6 million for fair value hedging items, of £18.7 million in Q4 2010.
Paragon said: “During the period, the Group has continued to build on the excellent progress made during the previous year, successfully managing the existing and acquired books whilst developing new lending products and distribution as the basis for future organic growth. In addition, we continue to pursue portfolio acquisition opportunities and new third party loan administration contracts to supplement this growth potential.”
