Egg's customers grow to 1.7m

Egg, which is 80% owned by Prudential, now has 1.7 million customers and Mr Gratton said an increasing amount were taking out more than one of the bank’s products.

Mr Gratton added he was particularly pleased that most of Egg’s credit card customers - 89% - were remaining loyal after a six-month incentive period.

The amount borrowed on the cards was also high, with an average monthly balance of £1,750 twice the UK average, he said.

Egg made its first move towards international expansion last week when it agreed a partnership with Microsoft last week.

The bank plans to launch an investment funds marketplace on MSN, the computer giant’s web portal, in the UK next February before extending it into Europe.

The deal follows on from a co-branding deal struck with high street retailer Boots last year and Mr Gratton said other partnerships could follow.

‘‘We are looking for a retail partner in Europe,’’ he said.

Egg’s shares dipped 2p to 160p in early trading after the results were announced.