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.
Paragon Banking Group PLC is a United Kingdom-based specialist bank. The Companyâs lending products include mortgages for landlords and loans for business customers. Its lending is funded by deposits from savings customers, together with wholesale funding. It helps individuals and small businesses across the United Kingdom prosper and is focused on customers in markets typically underserved by large high street banks. The Company operates through two segments: Mortgage Lending and Commercial Lending. It offers buy-to-let mortgage finance for landlords operating in the United Kingdomâs Private Rented Sector. It provides finance to small and medium-sized enterprises (SMEs), and small corporates operating in a range of commercial lending markets, as well as motor finance to United Kingdom-based consumers. The Company is focused on specialist assets and underserved markets in four main areas: SME lending, development finance, structured lending and motor finance.
PARAGON BANKING GROUP PLC 
