British mortgage bank Northern Rock says profit for 2003 will be at the top end of expectations but forecasts a slowdown in British house price inflation.
Mortgage lending has surged in recent years amid strong economic fundamentals and historically low interest rates. Northern Rock said today it expected average house price inflation to ease over the next nine months.
In a trading statement, chief executive Mr Adam Applegarth said Northern Rock's small size and low unit costs ensured that they were well-placed to weather the slow-down in the housing market.
The bank, one of the smallest but also the most efficient of Britain's major mortgage lenders, expects 2003 pre-tax profits to come in at the top end of analysts' expectations of between £356.2 million sterling and £378.7 million.
The group said net residential lending was up 41 per cent on the year to date and it had new business in the pipeline of over £4.4 billion at September 30th.
The group said it would meet its lending expectations in 2003 and its target of annual growth in assets under management of 20 per cent.
Northern Rock's share of net residential lending in Britain was over 8.5 per cent so far this year.