RBS makes record profits amid union controversy

The Royal Bank of Scotland has announced it has made £7.15bn (€10.6bn) in core profits in the last year.

These full year results are at the top end of expectations, driven by acquisitions and higher lending volumes.

The news is expected lead to fresh controversy in Britain about profiteering on the back of the rising tide of consumer borrowing, where the Consumers Association said the big high street banks were treating customers with "contempt".

One of the country's finance unions - Unifi - has said the bank has offered a below-inflation pay rise to 25,000 of its staff.

Britain's second largest banking group owns Ulster Bank, First Active, NatWest, Direct Line and Churchill insurance.

Average loans and advances to retail customers rose 12%, as low interest rates in Britain increased mortgage demand, while average customer deposits rose 8%.

The banks said that corporate borrowing remained subdued as a result of low levels of corporate investment and increased bond market issuance.

RBoS spent around £4.5bn (€6.68bn) on eight acquisitions during 2003, including the €900m takeover of Irish lender First Active.