Bank of Scotland reports 37% rise in profits

Bank of Scotland (Ireland) has announced a 37 per cent increase in pre-tax profits to €102 million.

Net interest income grew by 31 per cent to €123 million and was underpinned by a 30 per cent increase in lending in the first half of 2006 combined with a modest decline in net interest margin as interest rates rose.

The bank's cost income ratio improved from 43 per cent to 42 per cent.

Bank of Scotland's lending to retail and business customers remained buoyant despite rising interest rates

The bank said that margins in the mortgages have seen a small decline resulting from rising interest rates but that margins in business banking remained robust.