Operating profit before fair value items reached £226m, marking a 16.4% increase from £194.2m in 2021.
Statutory profit before tax, meanwhile, grew by 95.6% to £417.9m from £213.7m.
Total new lending rose by 23.6% to £3.21bn, with mortgage lending advances going up by 17.2% to hit £1.91bn, while commercial lending advances increased by 34.3% to £1.30bn.
Improvements were also seen on the BTL side of the business, with the average BTL LTV sitting at 57.9%, down from 61.2% in 2021.
Arrears on Paragon’s BTL book dropped to 0.15% from 0.21% this year.
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Nigel Terrington, chief executive at Paragon (pictured above), said: “These results reflect an outstanding financial and operational performance, delivering good growth, enhanced margins and improved cost efficiency, all combining to deliver strong returns to shareholders.
“As a leading specialist banking group, we are increasingly using technology to strengthen our franchises.
“New digital platforms introduced in the last year are already seeing tangible evidence of an enhanced customer proposition and service delivery, as well as improved cost efficiencies.
“Our cautious risk appetite, high quality loan book and extensive through-the-cycle experience ensure we are well positioned as we head into 2023 and are fully prepared to support our customers’ needs.”
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