Paragon Banking Group PLC (LON:PAG) said the number of buy-to-let mortgages agreed in the past quarter was down compared to a year ago but this was a “robust” performance in the circumstances given the coronavirus (COVID-19) pandemic.
In what was the first quarter of the lender’s financial year, new business volumes of £521.8mln were down 24% on the same quarter a year earlier but the group's buy-to-let pipeline at the end of the quarter has risen from £814mln to £966.8mln.
Specialist buy-to-let volumes fell by over £100mln to £298.7mln, which “largely reflects the lagged impacts of the first lockdown on our pipeline and market wide challenges facing the execution of housing transactions”, the FTSE 250-listed group said.
Net loan balances grew to £12.67bn at the end of December 2020, up from £12.4bn a year earlier. Commercial lending volumes of £217.7mln compared to £254.1mln a year earlier, but with advances ahead of those seen during the first quarter of 2020.
Arrears levels were broadly similar to those reported at the end of September and the take up of new payment holidays remained low.
Deposit balances were £8.6bn at the end of December, up from £6.6bn over 12 months.
The group's CET1 and total capital ratios remained strong at 15.1% and 17.3%, respectively.
In a statement. Paragon Banking's chief executive Nigel Terrington said: “With strong capital ratios and high levels of liquidity, we are well-positioned to face the challenges and opportunities ahead.”