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UK specialist bank focused on buy-to-let mortgages, SME asset finance and motor finance, funded by savings deposits.
UK specialist bank focused on buy-to-let mortgages, SME asset finance and motor finance, funded by savings deposits.
Lends mainly through mortgage brokers rather than a branch network, and earns the gap between loan yields and the interest it pays savers, with buy-to-let mortgages the largest book. It became a bank in 2014, having funded itself before that by packaging loans for investors, and now relies on deposits.
In one line: A UK specialist non-bank/challenger lender.
Moat: narrow (process know-how, distribution). Specialist underwriting expertise in niche lending segments larger banks avoid.
Headquarters: Solihull, UK · Founded: 1985 · Employees: 1,411
Size Paragon Banking (PAG.L) is a United Kingdom Financials company (Regional Banks) with a market value of $1.81B, the 171st largest of 363 United Kingdom companies the cockpit tracks. Shares closed at £750.50 on 6 Nov 2026.
Performance Over six months the shares gained 4.7%, against +5.1% for the median peer and +3.6% for the United Kingdom market (cap-weighted) — 10th lowest of 21 in its peer set.
Growth Revenue fell 6.8% over the last twelve months (peer median +4.4%); the operating margin is 48.0% (peer median 38.8%).
Valuation It trades at 0.95× book value against a peer median of 1.01× (11th cheapest of 21).
Price implies The share price implies a return on equity of about 14.0%; Paragon Banking delivers 12.0%, so the price asks more than the business earns today.
Next results Next results expected around 1 Dec 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | £1.23B | £1.28B | £1.34B | £1.04B | £580M |
| Revenue growth | — | -5% | +30% | +79% | — |
| Net income | £178M | £180M | £186M | £154M | £314M |
| Free cash flow | £313M | £285M | £119M | £273M | £790M |
| Capital expenditure | £3.40M | £3.90M | £5.40M | £3.20M | £3.00M |
| Total debt | n/a | £1.71B | £1.01B | £3.10B | £4.02B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | ROE | Price / book | Implied ROE |
|---|---|---|---|---|---|---|
| Paragon Banking PAG.L | $1.81B | +5% | -7% | 12% | 0.95× | 14.0% |
| OSB OSB.L | $2.27B | +4% | -6% | 12% | 0.78× | 12.1% |
| Shawbrook SHAW.L | $1.96B | -12% | +5% | 12% | 0.79× | 8.0% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | PAG.L | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +6.9% | +2.0% | 5th highest of 21 |
| 6-month return | +4.7% | +5.1% | 10th lowest of 21 |
| Return on equity | 12.0% | 9.5% | 4th highest of 21 |
| Price / book | 0.95× | 1.01× | 11th cheapest of 21 |
| Trailing P/E | 8.3× | 11.8× | 6th cheapest of 21 |
| ROE the price implies | 14.0% | 7.3% | 2nd most demanding of 21 |
| ROE delivered | 12.0% | 9.6% | 4th highest of 20 |
| Company | Market | Market cap | 6M return | Revenue growth | ROE | Price / book | Implied ROE | Delivered ROE |
|---|---|---|---|---|---|---|---|---|
| Paragon Banking PAG.L | United Kingdom | $1.81B | +5% | -7% | 12% | 0.95× | 14.0% | 12.0% |
| Dah Sing Financial 0440.HK | Hong Kong | $1.81B | +4% | -8% | 6% | 0.36× | 4.7% | 5.6% |
| Bank of Lanzhou 001227.SZ | China | $1.82B | -4% | 0% | 6% | 0.38× | 2.5% | 5.5% |
| Kiyo Bank 8370.T | Japan | $1.83B | +39% | +20% | 9% | 1.13× | 8.6% | 9.4% |
| S&T Bancorp STBA | United States | $1.79B | +14% | +2% | 10% | 1.27× | 10.8% | 10.0% |
| Dime Commercial Bancshares DCOM | United States | $1.85B | +13% | +14% | 9% | 1.39× | 12.4% | 9.4% |
| Jiangsu Jiangyin Rural Commercial Bank 002807.SZ | China | $1.77B | +5% | -3% | 10% | 0.57× | 2.9% | 10.5% |
| Bank of Guizhou 6199.HK | Hong Kong | $1.77B | -4% | -2% | 8% | 0.24× | 3.6% | 8.0% |
| Ogaki Kyoritsu Bank 8361.T | Japan | $1.75B | +45% | +39% | 6% | 0.66× | 6.1% | 5.6% |
| German American Bancorp GABC | United States | $1.88B | +15% | +12% | 13% | 1.63× | 11.0% | 12.8% |
| Byline Bancorp BY | United States | $1.70B | +15% | +2% | 12% | 1.34× | 10.3% | 12.3% |
| Wuxi Rural Commercial Bank 600908.SS | China | $1.94B | +3% | -5% | 10% | 0.54× | 2.8% | 10.1% |
| San-in Godo Bank 8381.T | Japan | $1.95B | +5% | +27% | 8% | 0.91× | 5.9% | 8.1% |
| Bancorp TBBK | United States | $1.97B | -15% | -7% | 33% | 2.96× | 26.3% | 33.0% |
| TriCo Bancshares TCBK | United States | $1.67B | +2% | +4% | 11% | 1.26× | 9.6% | 10.6% |
| Bank of Nagoya 8522.T | Japan | $1.67B | -8% | +25% | 7% | 0.83× | 6.1% | 7.3% |
| Nanto Bank 8367.T | Japan | $1.65B | +7% | +13% | 6% | 0.81× | 5.9% | 6.1% |
| Origin Bancorp OBK | United States | $1.64B | +14% | +5% | 10% | 1.29× | 10.1% | 10.4% |
| Bank First BFC | United States | $1.64B | +1% | +33% | 12% | 1.98× | 10.9% | 11.9% |
| Bank of Zhengzhou 002936.SZ | China | $2.01B | -3% | +1% | 3% | 0.34× | 2.6% | n/a |
| ConnectOne Bancorp CNOB | United States | $1.63B | +8% | +24% | 10% | 1.10× | 10.7% | 9.6% |