Bradford & Bingley says profits will be in line with expectations

The former building society has also announced that its annual profits were likely to meet market expectations.

Bradford & Bingley's (B&B) deal with GM, its second this year, increases its managed assets by up to 4.8%.

Chief executive Christopher Rodrigues said the company approached 2004 with continuing strong demand in its core mortgage and lending markets.

Recovery

The B&B says its annual profits for 2002 will come in between �249m and �266m, down, as expected by analysts, from 2001's �273.2m.

It reported back in August that first half profits were down because of a slump in profits at its distribution division, which sells other companies' financial products and has 295 estate agent branches.

While the estate agency business recovered in the second half, investment sales had not revived, the company said.

Mr Rodrigues said: "We approach 2004 with continuing strong demand in our core markets and healthy new business pipelines."

In a separate deal earlier this year the B&B acquired �2bn of mortgages from GM.