First Active reports strong mortgage demand

Robust growth in mortgage lending helped First Active post an interim pre-tax profit of €33.9 million, an increase of 11

Robust growth in mortgage lending helped First Active post an interim pre-tax profit of €33.9 million, an increase of 11.5 per cent on the same period last year.

Mortgage lending continued to grow strongly with new advances of €787 million in the first six months of the year, an increase of 34 per cent on the first half of 2002. First Active said it saw this momentum carrying through for the rest of the year.

Irish operations accounted for €29.5 million, an increase of 35.9 per cent on the same period last year. Profits in Britain were €4.4 million, down from €8.7 million in the same period last year as a result of the disposal of Britannic Money in December 2002.

Return on equity at 13 per cent was down from 14.9 per cent due to the increased level of shareholders' funds held in the business during the period arising from the disposal of Britannic Money.

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Other income grew by 12.9 per cent with income from the sale of insurance products showing particular strength increasing by 30.8 per cent over last year.