Ulster Bank’s parent Royal Bank of Scotland (RBOS) today reported a 15 per cent rise in first-half profits, at the top end of market forecasts, and said its overall credit quality remained strong.
Ulster Bank increased its total income by 11 per cent, or £25 million to £257 million and its contribution by 9 per cent, or £10 million to £125 million.
Pre-tax profits at RBOS for the six months ending June 2002 rose to £3.151 billion, above a consensus forecast of £3.145 billion.
Shares jumped nearly four per cent in early trade to £15.90.
Profits were boosted by strong growth at the bank's Direct Line insurance unit and its US-based Citizens bank division, as well as by cost-savings following its takeover of NatWest two years ago.
Royal Bank of Scotland shares have outperformed the European banking sector by about 10 per cent since the start of 2002.
The bank also proposed an interim dividend of 12.7 pence, 15 per cent higher than a year ago.