Paragon Banking Lifts Margin Outlook Amid Profit Drop
Paragon Banking Group expects its annual net interest margin to reach 300 basis points as it benefits from cheaper wholesale funding. The specialist lender reported a 2.5% fall in underlying profit and flagged increased market volatility due to geopolitical uncertainty.
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PARAGON BANKING GROUP PLC shares fell 7.5% Tuesday afternoon after underlying profit dropped 2.5% to an undisclosed figure for the half-year ended March 31. This performance follows a period where the United Kingdom lender raised its annual net interest margin outlook to 300 basis points. The results highlight how volatile interest rates and softer consumer and business sentiment are forcing frequent mortgage repricing and increasing loan impairments.
