Lloyds TSB has kicked off the season for reports from Britain's High Street banks - with a 7 per cent lift in its half-year profits.
The company, the UK's fifth-largest bank, has announced a pre-tax figure of £1.676bn for the first six months of the year.
This time last year the bank's profits fell by 7 per cent in the first half.
The pre-tax figure for the six months to June 30, 2004 came in at £1.564bn.
This year, says the bank, income growth exceeded cost growth in all areas of its business.
It pointed out that corporate and business banking had done particularly well.
However, like other banks, it had to set aside more money to cover bad debts from private customers squeezed by higher interest rates.
It maintained its interim dividend at 10.7 pence a share.
The bank has also been at loggerheads with the unions over staffing in recent times.
More jobs went following Lloyds TSB's decision to close operations at five locations.
The proposals affect more than 460 jobs in Swansea, Plymouth, Cardiff, Stockton and Taunton.
The bank said it would look to find alternative roles for as many staff as possible, as part of its plans to switch work to larger company sites, including offices in Glasgow, Manchester and Birmingham.
It denied claims from the Lloyds TSB staff union that the job losses were linked to the company's use of offices in India.
These are expected to employ more than 2,000 people by the end of the year.