Monday 2nd October 2006
Loan provider Northern Rock has announced strong trading figures in spite of increased interest rates.
The finance company said in its trading update that the UK economy is "healthy" and affordability is good for those in employment thanks to stable gross domestic product growth.
It added that total lending is on track to meet a target of 20 per cent asset growth by the end of the year.
Chief executive Adam Applegarth said: "Credit quality in each of our loan books has remained good and shows no deterioration since the half year results."
"We remain on track to deliver against all of our strategic targets for the full year," he added.
The company said it is "comfortable" with analysts predictions of £357 million profit for the year, an increase of 15.9 per cent on after-tax profits for 2005.
A joint venture with global investment bank Lehman Brothers is expected to become operational early in 2007. The partnership will see Northern Rock receiving a fee for issuing loans but without underwriting the credit risk.
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