Ulster Bank and First Active parent Royal Bank of Scotland reported annual profit up 29 per cent today on the back of strong revenue growth.
Pre-tax profit for 2003 rose to £6.16 billion sterling from £4.76 billion a year earlier, Britain's second-biggest bank said. Revenue rose 14 per cent to £19.23 billion pounds.
Ulster Bank increased profits by 12 per cent to £273 million compared to £244 million in 2002 driven by strong volume growth. The number of customers increased by 36,000 in the year. In January, RBS completed the acquisition of First Active in the Republic.
Royal Bank became Britain's second biggest bank by assets when it bought NatWest in 2000 for £21 billion. The bank finished paying for NatWest last year and will now start to generate capital that it can use for further acquisitions.
The bank said it would return surplus capital to shareholders if it did not find suitable acquisitions.
The bank's cost-income ratio fell to 42 per cent from 44 per cent a year earlier. The bad debt charge rose to £1.494 billion from £1.345 billion, including write-offs for fixed assets.
Royal Bank shares closed down 1.2 per cent to £16.35 yesterday. The stock has dropped 1.1 per cent in the past six months, making it the third-worst performer of 11 listed British banks.