Mortgage demand boosts A&L

PERENNIAL bid target Alliance & Leicester today reassured investors with news that it expects to meet growth targets for 2002. The bank, which recently lost its five-year takeover protection, said revenue growth has been strong and should increase by 4% this year.

First-quarter growth was more than 5%, driven by robust demand for mortgages and current accounts. The value of mortgage applications in the first four months of the year was 25% higher than in 2001 and gross lending is 7% ahead. Current account openings rose 50%.