RBS’ interim results revealed that its take of new lending outpaced its 7% share of mortgage stock, while its net mortgage lending for Q1 increased by £2bn.
The bank increased its total number of mortgage accounts by 10% in the last year. In Q1, it added 4000 mortgage accounts, taking the total to 849,000.
In addition, activity levels in Q1 increased 22% on the fourth quarter of 2009, with over 54,000 applications.
The lender, which is 84% owned by the state, said its net mortgage lending for the past 12 months had exceeded its original target of £9bn by £3.7bn. For the year ahead, it has agreed with the Government to make an additional £8bn of net mortgage lending available for residential deals.
Stephen Hester, group chief executive of RBS, said its retail and commercial business is recovering and likely to drive its growth over the next few years.
Jonathan Cornell, communications director for First Action Finance, commented: “It’s undoubtedly good to see our banks making a profit. While there is still dual pricing at RBS, it doesn’t do it to the extent it did last year and that’s an encouraging move.”
