British retail bank Lloyds TSB has reported first-half profits up 9 per cent.
Profits in the half year were £2.237 billion sterling up from £2.049 billion, excluding a £329 million charge for fluctuations in investment returns, exceptional restructuring charges and the costs of Lloyds' abortive bid for Abbey National.
Lloyds's plans to takeover rival Abbey National were scuppered by British regulators earlier this month.
The results, driven by respectable growth in retail financial services, compared with market forecasts for profits between £2.001 billion and £2.120 billion.
Chief executive Mr Peter Ellwood said: "Whilst the acquisition of Abbey National would have complemented our group, it was never going to be a transformational deal."
The bank, with Abbey out of reach, has turned its attentions again to continental Europe for a deal needed to enliven growth prospects going forward.
"We have talked with our counterparts from many financial services companies, particularly in Europe," Mr Ellwood said. "We will continue to pursue all opportunities with vigour."
There was a £54 million charge for restructuring, plus £16 million in costs for Lloyds's Abbey takeover plans.