General Motors Acceptance Corporation (GMAC) reported record quarterly earnings in the first quarter of 2003, propelled by record performance at its mortgage operations.

GMAC earned $699 million in the first quarter of 2003, up nearly 60 percent from the $439 million a year ago. Earnings at the mortgage group rose to a record $371 million, more than double the $148 million recorded in the first quarter of 2002. The improvement reflects continued strong volumes at both the residential and commercial mortgage sectors, according to GMAC.

GMAC’s financing operations also posted a strong performance with earnings of $302 million in the quarter, up $47 million from a year ago, reflecting higher asset levels and lower credit loss provisions. First quarter earnings at the insurance group were $26 million, down $10 million from a year ago. These results reflect a decline in the investment portfolio, which more than offset improved underwriting income.

GMAC's parent company, General Motors Corp., on April 15 posted stronger quarterly profits of $1.5 billion, boosted by a one-time gain of $505 million from the sale of its defense unit and stronger results from its automotive operations, according to Reuters.

GM, the world's largest automaker, said its first quarter profits rose to $2.71 a share, up from $228 million, or 57 cents a share, in the year-ago quarter. Last year, GM took one-time charges of $417 million, including job cuts and write-downs at its European automotive operations, Reuters said.

Excluding the one-time gain, GM earned $978 million, or $1.81 a share, in the latest quarter. That result compared with Wall Street forecasts for earnings per share between $1.00 and $1.85, with an average forecast of $1.54, according to research firm Thomson First Cal.