Bank of Ireland's British subsidiary, Bristol & West, has reported sharply lower pre-tax profits as a result of the transaction costs incurred through the takeover by the Irish group.

The half-year figures to the end of July last show an out-turn of £24.1 million sterling (£26.9 million) compared with £44.5 million at the same time last year. The interim figures include transaction costs of £20.3 million related to the Bank of Ireland purchase and were in line with expectations.

In a statement yesterday, Bristol & West said the figures reflected continued steady progress in its underlying business and after tax profits of £11.1 million were in line with market forecasts. The building society has, however, also reduced its provision for bad debts in the housing market because of an upturn in that market.