Paragon Bank’s Motor Finance division continued to accelerate lending during the first half of its financial year.

The division lent £75.7 million during the six months to the end of March 2022, over twice the amount loaned in the comparative period in 2021, and 6% greater than the value in the second half of 2021.

Paragon’s Motor Finance loan book was £236.2 million at the end of the period, compared to £220.4 million the year before.

The half year saw the Group’s first loans on static caravans, as well as its first products for financing electric vehicles.

Total lending across the Paragon Banking Group’s divisions increased by 32.2% compared to the same period last year to £1.49 billion. Pre-tax profits at the company increased 49% to £143.6 million.

Julian Rance, Paragon’s Motor Finance Managing Director, said: “We are pleased with the recovery the market has made since the reopening of dealerships following lifting of Covid-related restrictions. That created a groundswell of demand for used vehicles, which has fed through to strong asset values in the used market. Supply issues in the new car market have compounded that.”

He added: “The majority of our lending is typically in the second of the year, so to outperform that figure during our first half was particularly pleasing. I have also been encouraged with the steps we have made in the electric vehicle segment, where we have made a strong start. It is a market that will only grow as the technology matures.”

Paragon Banking Group’s half-year results statement can be viewed here.

For further information contact:

Jordan Lott
Media Relations Manager
Tel: 07800597962

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.