Mortgage bank Northern Rock today posted better-than-expected profits as it brushed aside fears that higher interest rates could dent its business.
The group achieved underlying annual profits of £587.7 million, a figure 16.5 per cent higher than 2005 and stronger than the £580 million forecast in the City.
Northern remained confident about its market in the year ahead, with residential lending in the UK set to be a "little higher than 2006" and the company's own level of arrears poised to remain low.
