Trading Statement

Paragon Group Of Companies PLC
30 September 2002


The Paragon Group of Companies PLC - Trading Update

The Paragon Group of Companies PLC will shortly be meeting analysts ahead of its
close period of the year ended 30 September 2002. The following is an update of
the trading position of the Group ahead of the year end and follows the interim
results which were announced on 21 May.

The Directors are pleased to report that the Group has achieved growth during
the year consistent with the objectives set for the business at the beginning of
the financial year. Profit before tax is expected to show growth in line with
expectations and, by virtue of improved cost efficiency measures, a further
improvement in the cost to income ratio is anticipated for the year.

Lending volumes are significantly ahead of those for the previous year with
activity in each business area consistent with the Directors' cautious stance on
the economy, as outlined in the Group's 2001 and interim 2002 statements. As a
consequence, strong growth has been achieved in the more defensive product
areas, particularly in first mortgage lending, with Paragon Mortgages
maintaining its focus on professional landlords in the private rented sector.
Within the consumer finance division, secured personal loans and car finance
have delivered strong growth, balanced, as anticipated, by lower lending volumes
in the more cyclical product areas, particularly unsecured personal loans. The
result is a business mix balanced more appropriately to the current economic
uncertainties. As a consequence, we have to date seen no credit deterioration
across the portfolio, with loans in arrears, as a percentage of the overall loan
book, expected to be similar to the previous year.

The Board of Directors intends to announce the preliminary results for the year
ended 30 September 2002 on 19 November and a full report on the progress
achieved by the Group will be issued at that time.


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