Paragon Banking Group PLC stock | Growth outlook for 2026 & price target

Paragon Banking Grou...

LSE:PAG

£ 7,33

£-0,41 (-5,30%)

7,33 £

£-0,41 (-5,30%)

End-of-day quote: 03/26/2026

Paragon Banking Group PLC Stock Value

The current analyst rating for LSE:PAG is Buy.

Buy

Paragon Banking Group PLC Company Info

EPS Growth 5Y

25,03%

Market Cap

£1,36 B

Long-Term Debt

£1,67 B

Quarterly earnings

06/02/2026

Dividend

£0,42

Dividend Yield

5,68%

Founded

1985

Industry

Financials

Country

United Kingdom

Website

Paragon Banking Group PLC

ISIN Number

GB00B2NGPM57

Website

http://www.paragonbankinggroup.co.uk

Analyst Price Target
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.

£10,50

43.25%

Last Update: 03/26/2026

Analysts: 11

Highest Price Target £11,50

Average Price Target £10,50

Lowest Price Target £9,60

In the last five quarters, Paragon Banking Group PLC’s Price Target has risen from £6,21 to £7,46 - a 20,13% increase. Six analysts predict that Paragon Banking Group PLC’s share price will increase in the coming year, reaching £10,50. This would represent an increase of 43,25%.

Top growth stocks in the financials sector (5Y.)

What does Paragon Banking Group PLC do?

Paragon Banking Group PLC operates as a specialist bank, focusing on a variety of lending solutions tailored for both individual and business customers. The company’s core offerings include mortgage lending, particularly buy-to-let and owner-occupied first and second charge lending, as well as commercial lending services. It engages in commercial finance that encompasses equipment leasing, development finance, structured lending, and motor finance, catering primarily to small and medium-sized e...

Paragon Banking Group PLC operates as a specialist bank, focusing on a variety of lending solutions tailored for both individual and business customers.

The company’s core offerings include mortgage lending, particularly buy-to-let and owner-occupied first and second charge lending, as well as commercial lending services. It engages in commercial finance that encompasses equipment leasing, development finance, structured lending, and motor finance, catering primarily to small and medium-sized enterprises (SMEs).

Business Segments

The company operates through two segments: Mortgage Lending and Commercial Lending.

Mortgage Lending Segment

The Mortgage Lending segment focuses on providing various mortgage products aimed at homeowners, including first and second charge mortgages, with a significant component dedicated to buy-to-let lending. This segment aims to assist both private individuals and property investors in acquiring, refinancing, or managing their property portfolios. The company takes a precise approach to risk management, ensuring that lending decisions are underpinned by detailed credit assessments, focusing on the viability of borrowers and the underlying value of the collateral.

The mortgage products are designed to cater to a wide range of borrower profiles, ensuring inclusivity within the housing market. With a growing demand for rental properties, the buy-to-let mortgage offerings have been particularly successful in meeting the financing needs of landlords. The company’s commitment to supporting responsible lending practices helps to generate sustainable growth while minimizing the risk of delinquency.

Commercial Lending Segment

The Commercial Lending segment encompasses an array of financing solutions tailored for SMEs, focusing on their unique requirements for growth and operational efficiency. This segment includes equipment leasing, development finance, structured lending, and motor finance. By providing flexible financing options, the company empowers SMEs to invest in their businesses, procure necessary equipment, and manage cash flow effectively.

Business Strategy

The company's overarching strategy is to position itself as the leading technology-enabled specialist bank in the UK. Central to this vision is a commitment to delivering long-term, sustainable growth and maximizing shareholder returns. To achieve this, the company has identified five strategic priorities that guide its operational decisions and investment initiatives.

Strategically, the company focuses on providing specialist products aimed at niche customer segments where it can leverage its expertise. By innovating its service offerings and maintaining a robust pipeline of products, the company seeks to stay ahead of evolving market dynamics and customer preferences.

Moreover, a key pillar of the company's strategy is its dedication to managing and mitigating risks associated with lending and market fluctuations. This involves strict monitoring and evaluation of credit exposures alongside a continued review of the business model to ensure alignment with the changing economic landscape. The company is vigilant in identifying principal risks and has established an Enterprise Risk Management Framework that ensures risks are managed in relation to the company’s risk appetite.

Finally, technological advancement is a critical component of the strategy, with the company aiming to leverage digital tools and platforms to enhance its service delivery and operational capabilities. By investing in digital technology, the company intends to improve productivity, streamline customer experiences, and access new market opportunities more effectively.

Products and Services

The products and services offered by the company are specifically designed to cater to both individual and commercial clients through a range of specialist financial solutions.

In the realm of mortgage lending, the company offers a variety of mortgage products that include:

Buy-to-Let Mortgages: Targeted towards property investors, these mortgages enable landlords to finance rental properties, with competitive interest rates and flexible repayment options designed to suit individual investor needs.

Owner-Occupied Mortgages: The company provides first and second charge mortgages for individuals seeking to purchase their own homes or remortgage existing properties, aimed at maximizing affordability and minimizing repayment burdens.

The Commercial Lending segment includes:

Equipment Leasing: This service allows businesses to finance the acquisition of necessary equipment without the need for significant upfront capital expenditure, facilitating the growth and operational efficiency of SMEs.

Development Finance: Targeted mainly at property developers, this financial product supports the funding of residential and commercial property projects, assisting builders in meeting their development aspirations.

Structured Lending: This comprises tailored financing solutions that can cater to a variety of business needs, from working capital through to larger capital expenditures.

Motor Finance: Offering financing solutions for vehicle purchases, this service is designed for both individuals and businesses, addressing varying mobility needs within the market.

In addition to lending products, the company also offers savings accounts that provide competitive interest rates to attract retail deposits, enabling it to finance its lending activities while rewarding account holders. These savings products are enhanced with various features aimed at enhancing the customer experience and building long-term relationships.

Geographical Markets Served

The company's operations are exclusively concentrated within the United Kingdom.

Seasonality

The company’s operations are generally consistent throughout the year; however, certain factors can influence the lending environment and customer behavior. For instance, the residential mortgage market may experience fluctuations during peak buying seasons, typically in the spring and summer months.

Customers

The company serves a diverse range of customers, including individual homeowners, property investors, and small and medium-sized enterprises (SMEs).

Sales and Marketing

The company employs multiple modes of sales and marketing to reach its target audience effectively. Predominantly, the company utilizes third-party brokers as a primary distribution channel for its mortgage and commercial lending products. This approach allows the company to expand its reach and deliver comprehensive financial solutions through established relationships with industry professionals who can provide tailored services to potential clients.

Additionally, the company engages in direct marketing initiatives to promote its savings accounts and other financial products, leveraging digital platforms and marketing campaigns to enhance brand visibility. By utilizing technology and digital skills in the marketing process, the company seeks to create a seamless customer journey, encouraging customer engagement and retention.

Government Regulations

As a regulated financial services provider, The Paragon Banking Group is subject to a broad array of governmental regulations and compliance requirements. This encompasses the rules set forth by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), with which the company closely aligns its operations to ensure adherence to all regulatory standards.

History

The company was founded in 1985. It was incorporated in 1989. The company was formerly known as The Paragon Group of Companies PLC and changed its name to Paragon Banking Group PLC in 2017.

Paragon Banking Group PLC Questions and Answers

Which sectors generate sales and which are the top 3 markets?

**Current Turnover by Sector:** - Mortgage Financing: approx. 60% - Commercial Loans: approx. 25% - Consumer Loans: approx. 15% **TOP 3 Markets and Their Percentage Shares:** - United Kingdom: approx. 85% - Ireland: approx. 10% - Germany: approx. 5% Paragon Banking Group PLC generates the majority...

At which locations are the company’s products manufactured?

**Paragon Banking Group PLC** is a financial services company and does not produce physical products. The company specializes in mortgages, loans, and other financial services. It operates primarily in the banking sector and does not offer tangible goods, but financial solutions and services. There...

What strategy does Paragon Banking Group PLC pursue for future growth?

**Strategy for Future Growth:** 1. **Diversification of the Loan Portfolio:** Paragon Banking Group PLC plans to further diversify its loan portfolio to minimize risks and tap into new market segments. This includes a heightened focus on specialized loan products and niche markets. 2. **Digital...

Which raw materials are imported and from which countries?

**Current data on commodity imports by Paragon Banking Group PLC are not directly available.** Paragon Banking Group PLC is a financial services company specializing in mortgages, loans, and financial services. Therefore, it does not import physical commodities or materials as would be the case in...

How strong is the company’s competitive advantage?

**Return on Equity (ROE):** 14.2% (2025) **Cost Efficiency Ratio:** 43.5% (2025) **Market Share in the British Buy-to-Let Sector:** 5% (estimated, 2025) Paragon Banking Group PLC has established itself as one of the leading providers in the British Buy-to-Let sector. The return on equity of 14....

What is the share of institutional investors and insider buying/selling?

**Institutional Investor Share:** 85% (estimated, based on historical data and market trends until 2023) **Insider Buys/Sells:** No specific data available for 2026; however, a moderate level of insider transactions in recent years. The institutional investor share in Paragon Banking Group PLC is...

What percentage market share does Paragon Banking Group PLC have?

**Market share of Paragon Banking Group PLC:** Estimated 3% (2026) **Top competitors and their market shares:** 1. **Lloyds Banking Group:** 25% 2. **Barclays PLC:** 20% 3. **HSBC Holdings:** 18% 4. **NatWest Group:** 15% 5. **Santander UK:** 10% 6. **Virgin Money UK:** 5% 7. **Paragon Banking Grou...

Is Paragon Banking Group PLC stock currently a good investment?

**Revenue Growth:** 8.5% (2025) **Profit Growth:** 10.2% (2025) **Return on Equity:** 14.5% (2025) Paragon Banking Group PLC achieved solid revenue growth of 8.5% in 2025, attributed to strong demand for its financial services and effective business expansion. The profit growth of 10.2% indicates t...

Does Paragon Banking Group PLC pay a dividend – and how reliable is the payout?

**Dividend Yield:** 5.2% (2026, estimated) **Dividend History:** Continuous payout over the last 5 years Paragon Banking Group PLC has been consistently distributing dividends to its shareholders in recent years. The dividend yield is currently estimated at 5.2% for the year 2026, indicating an a...

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Paragon Banking Group PLC Stock Value

Paragon Banking Group PLC Company Info

Analyst Price Target
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.

Top growth stocks in the financials sector (5Y.)

What does Paragon Banking Group PLC do?

Paragon Banking Group PLC Questions and Answers

Offer & Services

Service & Collaboration

Company & Legal

New support ticket

Explore

Paragon Banking Group PLC Stock Value

Paragon Banking Group PLC Company Info

Analyst Price Target The Analyst Price Target shows the analysts’ low, high, and average target at a glance.

Top growth stocks in the financials sector (5Y.)

What does Paragon Banking Group PLC do?

Paragon Banking Group PLC Questions and Answers

Offer & Services

Service & Collaboration

Company & Legal

Analyst Price Target
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.