Paragon Bank’s Motor Finance division has posted positive results during the first half of its 2022 financial year.
The division lent £75.7m 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 £236.2m 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 the 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.”
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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 by 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.