BoS boasts profits boost

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The Bank of Scotland, which earlier this year failed in its bid for NatWest, today said pre-tax profits for the six months to August 31, stripping out one-off costs, rose by 14 per cent from £471 million to £535 million.

The Bank of Scotland, which earlier this year failed in its bid for NatWest, today said pre-tax profits for the six months to August 31, stripping out one-off costs, rose by 14 per cent from £471 million to £535 million.

Profits were reduced to £469 million after a £66 million restructuring charge, largely due to outsourcing IT to IBM.

Customer lending rose at an underlying rate of 20 per cent to £61 billion, the bank said.

The chief executive Peter Burt said: "Our momentum if anything is continuing to increase".

The corporate banking division had been boosted by a number of smaller companies leaving the stock market, giving opportunities for the bank to take equity stakes.

Personal banking had also seen its profitable growth strategy continuing, the bank said.

However Mr Burt admitted there was pressure on margins.

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