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Paragon Banking Says Payment Deferrals Applied To 21% Of Loan Balances

Paragon Banking Group plc (PAG.L) said that just under 21% of the Group's loan balances have had a payment deferral at some stage as a result of Covid-19 crisis. Of that 21%, around 75% have not requested any further support.

However, the company said that the position remains a dynamic one with customers having the option to request a payment deferral up until the end of October 2020.

The Group said it continues to liaise closely with customers who have sought an extension to better understand their circumstances and future intentions. 98% of the Group's loan book is secured.

The Group said its trading performance has been in line with the Board's expectations, since 10 June.

The company noted that it considers that the range of economic scenarios disclosed at the half year remain appropriate and therefore no additional overlays have been required for provisioning during the third quarter.

The company said it has not experienced any significant credit losses or made any material specific provisions during the quarter.

Deposit balances rose to 7.6 billion pounds at the end of June and pricing levels have continued to fall.

Despite the UK emerging from lockdown, the company said the full economic effect of Covid-19 remains uncertain and it is therefore difficult to provide guidance for the year.

The Group did not declare an interim dividend.

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