Northern Rock confident over forecasts

Shares in Northern Rock firmed today after the British mortgage bank said it is on course to deliver strong earnings growth and…

Shares in Northern Rock firmed today after the British mortgage bank said it is on course to deliver strong earnings growth and meet its targets despite a slowing UK housing market.

Northern Rock said it was "comfortable" with analysts' forecasts for a pre-tax profit of between £353.5 million sterling and £376.7 million in 2003, with the mean forecast up 13 per cent on the year.

The earning per share consensus is for 62.5 pence, up 12 percent.

The bank has more than 20,000 accounts from Irish savers and over €736 million in Irish savings is believed to be on deposit.

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These figures, reported in January, showed a 45 per cent rise in the number of Irish-held savings accounts.

Northern Rock, one of the smallest listed British banks but also the most efficient, said it was confident of achieving its lending targets as economic fundamentals in the UK continue to support the housing and mortgage markets, with GDP growth of two percent, a firm employment market and low interest rates.