BANKING group Northern Rock yesterday forecast the ongoing strength of the housing boom would ensure final profits came in at the top end of expectations.
Updating the City on third-quarter trading, Northern Rock said the mortgage market continued to be supported by "sound economic fundamentals".
These include stable economic growth and low interest rates, now expected to stay around current levels for longer than first anticipated.
Northern Rock's net residential lending was up 42 per cent in the three months to September 30 while the pipeline of new business was more than £3.2bn by the end of the quarter.
That is 44 per cent higher than a year ago and Northern Rock said it was on course to meet lending expectations for 2002.
The former building society said credit quality was excellent with arrears at half the industry average.
Elsewhere, assets under management grew by 28 per cent in the nine months to the end of September while funding activities were performing ''extremely well''.
Analysts are predicting full-year profits for 2002 to come in between £316m and £325m. Chief executive Adam Applegarth said: ''Once again we are delivering record lending while maintaining tight control over costs, credit quality and lending criteria.
''We have laid the foundation for success into 2003 and are well placed to take the market share we desire to fulfil our future growth aspirations.''
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