British bank reports profit rise

Building society-turned-bank Alliance & Leicester today reported a 12% rise in profits and said it was on track to hit its revenue and cost-cutting targets over the next year.

The Leicester-based group, which employs 9,000 staff, also announced plans for a share buy-back programme later this year to reduce surplus capital.

Chief executive Richard Pym said: "We are delivering sustainable long term value to our shareholders and to our customers. We have produced a very satisfactory set of results."

Mr Pym, who took over at the helm last month, said the group had hit "all our key targets".

Pre-tax profits for the half year to June 30 rose to £233m (€367m), up from £208m (€328m) the same time the previous year, and at the top end of analysts’ expectations.