What a time to be a banker. The economic outlook is uncertain, regulation is mounting, interest rates are low, and rising competition from a flood of start-ups in the mortgage market is squeezing profit margins.
However, the gloom has left shares in Paragon Banking Group looking cheap, some analysts say — hovering below the book value. Even against the drab backdrop, Paragon is emitting a few rays of light.
For starters, the company, run by chief executive Nigel Terrington, is still expanding its lending and growing its net interest margin — a key measure of profitability for banks — at a time when others are coming under strain.
Paragon recently intensified its focus on mortgages for professional buy-to-let investors, which represent about 88% of new