Paragon Banking Group PLC (PAG.L) on Tuesday reported lower profit for the first half of fiscal 2026, as higher credit loss provisions and fair value losses offset growth in net interest income.
Profit before taxation fell to £133.2 million from £140.1 million in the prior-year period. The decline reflected fair value net losses of £12.5 million, compared with losses of £2.8 million a year earlier, and an increase in provisions for credit losses to £21.5 million from £15.3 million.
Excluding one-time items, underlying profit before tax dropped 2.5% to £145.7 million from £149.4 million.
Operating income increased to £259.2 million from £254.0 million, driven by higher net interest income, which rose to £253.4 million from £247.9 million.
Profit on ordinary activities after taxation was £98.6 million or 50.3p per share compared with £100.8 million or 48.2p per share in the first half of fiscal 2025.
Underlying EPS increased 2.9% to 56.3p.
The company declared an interim dividend of 15.1 pence per share, up from 13.6 pence a year earlier, to be paid on July 24, to shareholders of record on July 3.
The lender also announced plans to launch a new share buy-back programme of up to £50 million in the second half of the financial year, after completing a £50 million buy-back programme during the first half.
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