Profits up 11% at Royal Bank of Scotland

3 August 2007

Royal Bank of Scotland (RBS) has posted first-half profits of $10.4 billion - a rise of 11 per cent from the year ago period's figure of $9.36 billion.

The return represents a better than expected performance for the Scottish bank, after analysts polled by Reuters predicted profits of £10.2 billion.

The improved showing for RBS was driven principally by 19 per cent growth in profit from investment banking to $4.4 billion at its Global Banking & Markets Division.

Meanwhile operating costs as a percentage of revenue improved to 41.4 per cent from 41.9 percent.

This helped to offset a 27 per cent drop in profit to $510 million from the firm's insurance business, where claims related to a recent spate of floods in the UK totalled $254 million.

News of the company’s interim performance comes as RBS is embroiled in a takeover battle with Barclays Bank for Dutch bank ABN Amro.

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