Paragon Bank’s Motor Finance division recorded a 66% increase in full-year lending volumes, the company announced today.

New lending in the year to 30 September 2022 grew to £166.2 million, up from £100.1 million, as used car demand rebounded following the lifting of Covid lockdown restrictions.

The year saw the division launch its first products for financing battery-powered electric vehicles (BEVs). Over the year, £6 million of new loans were made for BEVs, reflecting the recent growth in the availability of these vehicles.

The Motor Finance division also began to fund static caravans during the period as it focused its business on specialist areas of the market.

Operating profit before fair value items at Paragon Banking Group rose by 16.4% to £226 million, reflecting the strong performance of the Group.

Julian Rance, Paragon Bank’s Motor Finance Managing Director, said: “Demand for used cars bounced back strongly as forecourts reopened and the availability of new cars was restricted due to supply chain issues. This was reflected in good lending growth for the division.”
 

For further information contact:

Michael Clarke
Head of Media Relations
Tel: 07740090746

www.paragonbank.co.uk 

Notes to editors:

Paragon Motor Finance provides funding for cars (including electric), light commercial vehicles, motorhomes and touring caravans.

Paragon Motor Finance is a member of the Paragon Banking Group which is a FTSE 250 group based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group has over £12 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 5390593.  Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.  Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.