Paragon Banking Group PLC (LSE:PAG) has reported another year of strong performance for the period ending September 2025, posting a 17.5% return on tangible equity and lifting its dividend by 8.7%. The company also unveiled a £50 million share buyback programme for FY26, underscoring its solid capital position and continued focus on shareholder returns. Alongside the financial results, Paragon highlighted major advances in its digital transformation efforts, including the rollout of the Spring app-based savings brand and a fully digital buy-to-let origination platform—both of which have improved customer experience and operational efficiency. Despite broader economic uncertainty, the group remains confident about growth prospects across its specialist lending markets, supported by a strong balance sheet and clear strategic direction.

Paragon’s outlook is anchored by its consistently strong financial performance, with profitability, cash generation, and a favourable valuation—marked by a low P/E ratio and high dividend yield—providing meaningful support. However, bearish technical signals introduce a cautious note to an otherwise positive investment picture.

More about Paragon Banking Group PLC

Paragon Banking Group PLC is a UK-focused specialist lender and banking group offering mortgages, commercial lending solutions, and innovative digital banking products. The company is actively advancing its digital strategy through offerings such as app-based savings and streamlined, tech-enabled mortgage origination platforms.

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