Britain's booming housing market helped mortgage bank Alliance & Leicester to an 18 per cent rise in 2002 earnings on Friday to beat analysts' forecasts.
Pre-tax profit climbed to £468 million sterling from £396 million in 2001. Analysts had expected a figure of around £456 million.
The firm, which was courted by Bank of Ireland last year, also said its total dividend for 2002 rose by 10 per cent to 39.9 pence per share and it achieved £20 million of cost savings.
But the firm is concerned about the British economy.
"The economic environment we face in 2003 is more uncertain, with much of the world economy entering 2003 in a somewhat depressed state," said chief executive Mr Richard Pym.
The recent property boom in Britain has prompted fears of a collapse as the general economic climate darkens and personal borrowing hits record highs.