The group detailed this in its full year results, which analysed performance for the year up to 30 September 2020.
Also within the report, it showed that its buy-to-let new business pipeline increase from £789.8m to £868.1m over the same timeframe.
In addition, development finance lending advances grew to £385.3m from £362.9m.
The bank also noted that its full year dividend of 14.4p was in line with policy.
Capital ratios also rose over the selected timeframe, up from 13.7% to 14.3%.
Nigel Terrington, chief executive of Paragon, said: “COVID-19 has impacted every individual and business across the UK.
“However, we entered this year from a position of strength, with strong capital and liquidity, an exemplary loan book and an increasingly diversified business.
“Our lending performance has been robust and we have seen a recovery and growing momentum in new lending activities.
“Our retail deposit division has had a transformational year, broadening its product range and distribution with balances increasing by 22.9%, at a lower cost, providing us with a reliable, scalable and cost-effective source of funding.”
