Northern Rock plc issues preliminary results

Amanda Jarvis

January 29, 2003

Record net lending of £8.2 billion (£6.7 billion organic, £1.5 billion acquisition) is an increase of 60.7%. Because of this, its total share of the UK’s net mortgage lending is 9.2% (7.3% organic, 1.9% acquisition).

Commenting on the results, Adam J Applegarth, chief executive, said: “Our strategy of growing assets, reducing unit costs and so growing profits and improving shareholder returns continues to work well. The housing market is set to be quieter in 2003. The economic fundamentals of low interest rates, low inflation, low unemployment and a very limited increase in the supply of new housing stock will continue to underpin the market.

“Our low costs, relative size and ability to retain existing customers mean we remain confident of achieving our targets, confirming that our virtuous circle strategy is in very good shape.”

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