Paragon Banking Group (PAG) Q3 2026 TU earnings summary

Executive summary

• Strong trading performance continues, with new growth opportunities and robust credit quality supporting margins and operating leverage.

• Full-year guidance for FY26 is reaffirmed, with the business well positioned for further growth in FY27.

• Operational model simplified and capital position enhanced following the disposal of the SFS business.

Financial highlights

• Aggregate new advances for the nine months to June rose 4.3% year-over-year to £2.06 billion.

• Net loan book grew 3.0% over twelve months; underlying growth rate was 6.1% excluding legacy portfolio run-off.

• Mortgage advances up 1.2% year-over-year to £1.12 billion; Commercial Lending volumes up 8.2% to £0.94 billion.

• Buy-to-let annualised redemption rate at 8.1% for the first nine months.

Outlook and guidance

• FY26 guidance unchanged: Mortgage Lending advances at lower end of £1.5–£1.7 billion, Commercial Lending £1.2–£1.4 billion.

• Net interest margin expected around 300 basis points; operating expenses around £185 million.

• Return on tangible equity (ROTE) in mid 15–20% range; share buy-backs up to £100 million.

• Full-year results to be released on 1 December 2026.