National Westminster Bank yesterday promised a "strong, independent future", rejecting suggestions that it needed to merge with a stronger financial company.

So far this year NatWest's approaches to the Abbey National banking group have been rebuffed and it has spurned a proposal from Prudential Corp, the UK insurer.

But Lord Alexander, group chairman, said these "exploratory talks" had confirmed NatWest's determination to go it alone.

"There is a world of difference between taking a view that you need a merger, which we don't, and examining opportunities. We do not need a partner," he said, as the group reported a profit of £775 million sterling from continuing operations in the six months to June 30th.

But Nat West's investment banking arm NatWest Markets saw its first half pre-tax profits tumble by £111 million sterling. While this included the already flagged £77 million loss resulting from the bank's options mispricing scandal, the fall was greater than expected.

The turmoil surrounding NatWest in recent weeks prompted the bank to invite about 2,000 managers to the International Conference Centre in Birmingham to present its results and attempt to calm staff worries about its future.

Mr Derek Wanless, chief executive, said NatWest, which had expressed interest in buying an insurance company or a building society, planned no significant acquisitions. However, it would be interested in a smaller purchase such as TSB Ireland, should it become available.

Group profit before tax totalled £669 million after a £106 million adjustment for the effects of the Budget on its leasing business. This was offset by a reduced tax charge, leaving attributable profits of £488 million compared with a loss of £111 million a year earlier, when results were hit by the sale of its US retail banking subsidiary.

Mr Wanless said NatWest's 13.4 per cent return on equity in the first half was "clearly inadequate and he was determined to achieve the group's target of 17.5 per cent in 1998.