Added to YB: 2026-09-10
Pitch date: 2026-09-08
PAG.L [bullish]
Paragon Banking Group PLC
-1.13%
current return
Author Info
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Company Info
Paragon Banking Group PLC provides financial products and services in the United Kingdom. It operates in two segments, Mortgage Lending and Commercial Lending.
Market Cap
GBP 1.5B
Pitch Price
GBP 7.99
Price Target
1.0K
Dividend
5.37%
EV/EBITDA
N/A
P/E
9.13
EV/Sales
N/A
Sector
Financial Services
Category
value
THE NIM ACCRETION TRADE - $PAG: Too Bearish
PAG.L: Paragon’s cyclical buy-to-let discount looks too bearish as its deposit-spread headwind has nearly fully unwound and 80% retention of fixed-rate maturities supports NIM expansion. H1 2026 ROTE was 17.4% and NIM guidance rose to ~300 basis points. At ~1.19-1.28x estimated tangible book, fair value exceeds 1,000p versus ~820p, with downside if landlord sales accelerate or NIM guidance falls below 290 basis points.
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