SCOTTISH Widows Bank yesterday defied market conditions to report a rise in interim profits.
The Edinburgh-based bank, part of the Lloyds TSB group, posted a 12 per cent rise in pre-tax profits in the six months to 30 June to £16.4 million.
Scottish Widows Bank's gross mortgage lending rose by 89 per cent when compared with the same peri
od last year to £1.4 billion.
The bank's net mortgage growth for the first half of the year topped £800m, a rise of 14 per cent compared with the second half of 2007.
Graeme Hartop, chief executive of Scottish Widows Bank, told The Scotsman that the firm had benefited this year after other mortgage lenders withdrew their products.
Hartop said: "We've had a very strong first half. We saw a significant reduction in the supply of mortgages but the stronger players who were left with a lending appetite could grow their market share during that period."
The bank said its credit quality remained strong, with just 0.23 per cent of its mortgage book standing at two or more payments in arrears, which Scottish Widows said was well below the industry average.
Hartop warned the second half would be "challenging" given economic conditions.
About 80 per cent of the bank's mortgage business comes via financial advisers, while 20 per cent is direct through the internet and direct mailings.
The full article contains 237 words and appears in The Scotsman newspaper.
