Northern Rock increases market share.

Wednesday 25 January 2006

Northern Rock, Britain's eighth biggest bank, has revealed a 14 per cent rise in profits after increasing its share of the UK mortgage market to 8.1 per cent in 2005 from 6.8 per cent in 2004.

The company said that after changing mortgage prices four years ago it now retained 80 per cent of its customers compared to 25 per cent before.

Chief executive Adam Applegarth suggested that Northern Rock's success was founded upon appealing to rival's customers.

"We're a natural pincher of other people's business and we're also a natural home for people moving house," he told Reuters.

The Newcastle-based bank said it expected assets to expand by about 20 per cent for the next two to three years.

"We have low levels of arrears, strong credit risk management and a low risk balance sheet," said Mr Applegarth.

The Council of Mortgage Lenders said that mortgage lending in December 2005 amounted to 26.3 billion, 25 per cent higher than in the same month of the previous year.


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Northern Rock increases market share.