BRITISH bank Abbey National has reported a 10 per cent rise in 1995 pre tax profits to £1.026 billion sterling and said it was considering acquisitions in the life and pensions market.

The profit, at the top end of analysts' forecasts, was up from £932 million in 1994, said Abbey National, adding it would pay a 21.75p dividend per share. Abbey National owns 9.9 per cent of the Irish Permanent.

"We're looking very carefully at the life and pensions market," Mr Peter Birch, Abbey National chief executive, said, although "We're not in immediate discussions".

On the mortgage side, Abbey said its share of the increase in business outstanding during the year was 9.2 per cent. Its normal market share is around 12 per cent.

Britain's depressed housing market is characterised by fierce competition between mortgage lenders which are broadly divided into two groups mutually owned building societies and stock exchange listed banks, like the Abbey National.

Last week, Nationwide cut its standard variable mortgage rate to 6.99 per cent. However, the Abbey left its rate unchanged.