LONDON (Reuters) - Britain’s Paragon Group of Companies (PARA.L) said on Thursday it was reorganising its business lines to accelerate its transformation into a diversified banking group and improve efficiency.
The group will be renamed Paragon Banking Group and its lending and operating activities, together with its loan portfolios, will be managed by Paragon Bank. This follows the sale of some of the group’s holding interests, including investments in Paragon Finance, to Paragon Bank.
The reorganisation is expected to make Paragon Bank “consistently profitable” with no need for periodic capital injections from the holding company.
“This revised organisational structure and the financial efficiency from aligning the vast majority of the group’s business lines under the bank will help optimise funding and capital over time,” said Paragon CEO Nigel Terrington.
Reporting By Pamela Barbaglia; Editing by Susan Fenton