Strong performance and well positioned
Paragon Banking Group PLC
Financial results twelve months ended September 2022
Agenda
Financial overview
Richard Woodman, Chief Financial Officer
Strong performance | Strategy overview |
and well positioned | |
Nigel Terrington, Chief Executive Officer | |
Conclusions
Financial results twelve months ended September 2022 | 2 | |
Key messages
Purpose …
- to support the ambitions of the people and businesses of the UK by delivering specialist financial services
• Competitive advantage through specialisation | • Optimising risk reward through better | ||
understanding and deep sector experience | |||
• Positive gearing to higher rates | • Margins benefit from deposit beta and | ||
diversification-led structural widening | |||
• Prudent through-the-cycle risk appetite | • High quality loan book, 99% secured, low LTVs, | ||
further credit tightening applied over last year | |||
• >15% RoTE provides continued strong capital | • £700 million in dividends and buy-backs since 2015 | ||
accretion and shareholder returns - 16.3% CET1 | • £50 million new buy-back announced | ||
• Capital management is a strategic priority | |||
• Digital transformation driving enhanced | •<40% cost:income ratio | ||
customer and broker proposition and greater | |||
efficiency | |||
Well positioned to deal with a more challenging environment
Financial results twelve months ended September 2022 | 3 |
Strong operational and financial performance
Financial performance
Strong new business growth
Robust balance sheet
- Operating profit £226.0 million, up 16.4% on 2021
- Pre-provisionprofit up 26.6%
- Underlying EPS +17.9%
- Underlying NIM trajectory (2.69%, +30bps on 2021) accelerated by liability-side gains
- Underlying RoTE 16.0%
- Full year dividend 28.6p; DPS +9.6% on 2021
- Net loan growth 6.0%; strong originations and good customer retention
- Period end pipelines strong despite September disruption
- Deposit balances +14.7% year-on-year
- Good progress on digital transformation
- Exemplary and disciplined credit standards
- Prudent economics and overlays underpinned by secured loan book and low LTVs
- Capital strong, CET1 16.3%, IRB continuing to progress, TNAV £5.33 / share
- Further £50 million 2023 buy-back programme announced
Financial results twelve months ended September 2022 | 4 | |
Financial overview
Richard J Woodman
Chief Financial Officer
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Paragon Banking Group plc published this content on 06 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 December 2022 07:21:03 UTC.