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From the Financial Times:
Paragon eyes banking licence
Paragon Group is in talks over a deal that, if completed, would grant the buy-to-let lender a banking licence.
The FTSE 250 company is in exclusive discussions with Hampshire Trust, a tiny specialist private bank that finances solicitors and property developers. The mooted deal was first reported by the Sunday Times.
Shares in Paragon have rallied almost a third this year to close on Friday at 240p, as the group has profited from banks’ travails.
The group has been buying unwanted loan portfolios as larger competitors seek to scale back their balance sheets to meet tougher capital requirements.
Deals completed by Paragon in the past year include the acquisition of a portfolio of unsecured consumer loans from Royal Bank of Scotland for £43m.
It has also benefited from the increasing propensity of individuals to rent property rather than buy their own homes, which has increased rents.
Annual pre-tax profits rose by almost a fifth to £95.5m, Paragon disclosed last month.
If the deal with Hampshire Trust was completed, Paragon would gain a banking licence, allowing it to offer savings accounts to customers.
Paragon Group declined to comment and Hampshire Trust did not return calls.
Paragon eyes banking licence
Paragon Group is in talks over a deal that, if completed, would grant the buy-to-let lender a banking licence.
The FTSE 250 company is in exclusive discussions with Hampshire Trust, a tiny specialist private bank that finances solicitors and property developers. The mooted deal was first reported by the Sunday Times.
Shares in Paragon have rallied almost a third this year to close on Friday at 240p, as the group has profited from banks’ travails.
The group has been buying unwanted loan portfolios as larger competitors seek to scale back their balance sheets to meet tougher capital requirements.
Deals completed by Paragon in the past year include the acquisition of a portfolio of unsecured consumer loans from Royal Bank of Scotland for £43m.
It has also benefited from the increasing propensity of individuals to rent property rather than buy their own homes, which has increased rents.
Annual pre-tax profits rose by almost a fifth to £95.5m, Paragon disclosed last month.
If the deal with Hampshire Trust was completed, Paragon would gain a banking licence, allowing it to offer savings accounts to customers.
Paragon Group declined to comment and Hampshire Trust did not return calls.
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