The boss of Paragon said the challenger bank will continue to place its bets on professional landlords so that it avoids competing with bigger players and becoming a “loan sausage machine”.
Chief executive Nigel Terrington said the bank had continued to grow, reporting a 7.8% rise in profit for the year to September, as it had largely avoided the highly competitive market for amateur landlords and instead focused its efforts on those with three houses or more.
“There’s too much capital in the banking sector chasing an inadequate amount of business, so I need to make sure I’m allocating capital to the areas that are getting the best returns,” he said.
