Paragon Banking Group PLC (LSE:PAG) jumped 8% as the specialist mortgage lender's half-year numbers showed no ill effects from the recent wobble in the housing market.
“New mortgage lending increased by 19.1% due to our focus on supporting professional landlords, who continue to see strong portfolio growth and tenant demand,” said Nigel Terrington, chief executive.
Commercial lending generally rose by 13.9% while savings balances jumped 20.5%, reflecting the much better rates the bank offers compared to high street lenders.
Net interest margins are now expected to rise to 3% this financial year (from 2.95% currently), Terrington added, while the strength of Paragon's balance sheet sees a buyback programme increased by £50mln to £100mln.
Half-year profits in the six months to end March 2023 rose 22% to £129mln on an underlying basis, with the interim dividend going up by 17% to 11p.
Shares rose 42p to 545p.