The figures, which indicate a net income raise to $433 million from first half showing of close to $400 million, represent a better than expected performance for the bank whose stock showed a 6.3 per cent decline in 2007.
The improvement for the UK's eighth-largest bank has been attributed by analysts and A&L chief executive Richard Pym to increased sales of mortgages, the sale of a subsidiary and a steadying of charges for bad debts.
Last year A&L's stocks were the subject of a proposed takeover from French bank Credit Agricole, at which time it was the UK's best-performing banking stock. However, share prices dipped dramatically when the bank pulled out of the deal.
Signs of recovery for A&L come at a time when the bank have recently announced they are to follow last year's purchase of $300 million of their own stock with a further $600 million purchase in 2007.