Paragon Banking Group PLC (PAG.L)
Operating quietly in the UK specialist lending market, Paragon focuses heavily on buy-to-let mortgages and commercial lending.
Is Paragon Banking Group PLC a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Solid net profit margins above thirty percent. Worth weighing: Revenue growth has been remarkably flat recently. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Paragon Banking Group PLC actually fallen?
Over the last 2 years of daily prices, Paragon Banking Group PLC fell as much as −27% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Consistent dividend payouts compound alongside a expanding portfolio
Structural shifts in UK buy-to-let reduce profitability permanently
What does Paragon Banking Group PLC do?
Paragon Banking Group is a well-established specialist lender that sits slightly apart from the big high-street names, focusing instead on professional landlords and business borrowers. It generates income mainly by lending money at higher interest rates than it pays to savers and wholesale markets. The key thing keeping observers hooked is how skillfully the group manages its loan book while interest rates bounce around.
On our factor screen it looks strongest on income and value, and weakest on growth.
- ✓Pays a dividend - about 5.4% a year
- ✓Very profitable - turns about 35% of sales into profit
- ·Low P/E of 9 vs last year's earnings
- !Carries a lot of debt - roughly 1.7x its equity
- Value screens high (72/100)
- Income screens high (72/100)
- Solid net profit margins above thirty percent
- Attractive dividend yield appealing to income-focused portfolios
- Modest valuation multiples relative to earnings
- Regulatory changes targeting landlords could dent loan demand
- An uptick in loan defaults if the UK economy stumbles
- Fluctuations in interest rates squeezing lending margins
What do Paragon Banking Group PLC's numbers mean?
Does Paragon Banking Group PLC pay a dividend?
Yes - Paragon Banking Group PLC currently pays a dividend of about 5.4% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
What do the numbers say about Paragon Banking Group PLC's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
When does Paragon Banking Group PLC report earnings, and how did recent quarters go?
Paragon Banking Group PLC is next scheduled to report on about 2026-12-01 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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What are the scenarios for Paragon Banking Group PLC?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Paragon Banking Group PLC?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Solid net profit margins above thirty percent
- Attractive dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone. appealing to income-focused portfolios
- Modest valuation multiples relative to earnings
- Revenue growth: How fast the company's sales grew versus a year ago. has been remarkably flat recently
- Heavy exposure to the UK property and buy-to-let sectors
- Slightly higher volatility than the wider market, shown by the beta of 1.2
- Regulatory changes targeting landlords could dent loan demand
- An uptick in loan defaults if the UK economy stumbles
- Fluctuations in interest rates squeezing lending margins
The write-up's own warning lights — if these start happening, the case above changes.
- A sharp, sustained drop in net margins
- A sudden cut to the dividend payout
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.