Online bank Egg has said its main credit card business is growing strongly and the firm is well positioned to drive business forward in 2003.

In a trading update, Egg said it had launched its first major product outside the UK with a French version of the Egg credit card.

Although it is too early to draw conclusions, Egg said it was pleased to have 40% brand awareness in France and 28,000 successful applications in the first month.

Early indications suggested that applicants for the Egg card were earning 30% more than the French average salary, said Egg.

UK 'on track' for profits

The online bank has set itself a target of acquiring 1 million French customers within three years.

It spent �19.4m ($30.6m) on developing its French business in the July to September period, ahead of the November Egg card launch.

In the UK, Egg's credit card remains its leading product, but the online bank has a burgeoning business selling other loans to card holders.

"The UK business continues to grow strongly and profitably," and is "on track" to deliver further growth in profits in the final three months of 2002, said Egg.

The company's shares rose 5.7% in London on Thursday morning to more than 142 pence, before falling back to 136 pence by midday.

It will report its full year 2002 financial results on 24 February 2003.