The Paragon Banking Group Board is proposing, subject to approval at the AGM on 2 March 2022, a final dividend for the year of 18.9 pence per share (2020: 14.4p per share). This would give a total dividend of 26.1 pence per share (2020: 14.4p per share). This dividend would be in line with the stated policy, giving a dividend cover of 2.50 times (2020: 2.50 times).
Other financial highlights include:
Underlying profit increased by 61.8% to £194.2 million (2020: £120.0 million)
Statutory profit before tax increased by 80.5% to £213.7 million (2020: £118.4 million)
Impairment coverage reduced to 49 basis points reflecting strong credit performance (2020: 64 basis points). Model overlays broadly maintained
Reported EPS up 81.1% to 65.2p (2020: 36.0p), underlying EPS up 62.5% to 59.3p (2020: 36.5p)
Full year dividend of 26.1p (2020: 14.4p)
Capital ratios remain strong after accruing for the dividend; CET1 ratio at 15.4% (30 September 2020: 14.3%)
Net interest margin of 239 basis points up from 224 basis points in 2020
Return on Tangible Equity increased to 16.2% on a statutory basis, 14.7% on an underlying basis
2022 share buyback of up to £50 million announced (in addition to remaining £2.2 million from the 2021 buyback)
