Despite competitive pressures that have squeezed margins, subprime lenders reported solid profits in the early part of 2005. New Century Financial, for instance, reported $84.8 million in net income for the first quarter, down from $87.3 million during the same period in 2004. The company, a real estate investment trust, pegged the downturn on rising interest rates and slower home price growth. Competitive pressures also hurt the company’s profitability: New Century saw its net operating…