Bristol City Council's housing company has been praised for losing less money than expected.
It was anticipated Goram Homes would make a £2m loss in the 2022/23 financial year.
But figures from the firm's recent annual report revealed losses of only £600,000.
The news was welcomed by cross-party councillors on the council's overview & scrutiny management board on 4 September.
Goram Homes managing director Stephen Baker told the meeting: "I'm pleased to report our finances are better than forecast in our business plan, a result of taking a prudent approach in a difficult economic market."
He said the company had made "significant progress" this financial year, reported the Local Democracy Reporting Service (LDRS).
"We also secured planning permission for hundreds more homes across Bristol and began work at Hengrove Park, the largest development in Bristol this century."
Labour Councillor for Bedminster, Mark Bradshaw, told company bosses at the meeting: "You've done well to weather the current economic storms which are having a huge impact on the residential market."
Goram Homes was set up in 2018 as a subsidiary of Bristol Holding Ltd, which is wholly owned by Bristol City Council.
The housing company has been tasked with building 3,000 homes over the next 10 years, the many of which will be affordable, to help alleviate the housing crisis in Bristol.
The company's first development, the 268-home One Lockleaze, is expected to be completed around the end of this year.
Conservative Councillor for Westbury-on-Trym & Henleaze, Geoff Gollop, told the committee: "This is the most positive report you've presented to us, not least because there is some building going on and there's something happening.
"When I look at the figures, to see the cumulative profit and loss to be £1.4m better than the business plan is good, but £600,000 of that comes from deferred [corporation] tax."
Goram Homes said the £600,000 it gained - half of which was cash and the other half a tax benefit or credit to be used at a later date - was positive because it was the result of improved confidence in its financial performance and future projections.