Northern Rock plc has announced a 22% increase in pre-tax profits in its interim results for the six months ended 30 June 2003.
The lender’s gross lending of £7.8bn represents an increase of 34.4%, and net lending of £3.9bn ‘ an increase of 11.4%.
This growth has caused its share of UK net mortgage lending to rise to 9.3%. It anticipates further growth in the next six months as the pipeline of new business at the end of the first half of the year was £4.3bn, up 26% on the end of 2002.
The Newcastle-based lender claimed this growth is partly due to changes in its customer retention strategy, which allows existing borrowers to move onto any product available to new borrowers. It said it now retains 60% of potential re-mortgagors and 50% of people moving house.
Adam Applegarth, chief executive of Northern Rock, said: ‘Our 2003 first half results are encouraging. While we still expect the housing market to slow further, our small size, large cost advantage, ability to generate gross lending and retain existing customers, all stand us in excellent shape to continue to deliver for the foreseeable future.’