Royal Bank of Scotland Group, which owns Ulster Bank and First Active, says first-half profit rose in line with expectations as the company boosted revenue and gained from acquisitions.
Royal Bank announced eight acquisitions last year, including mortgage lender First Active for €887 million.
UK commercial banks' profits are booming amid record borrowing and high levels of corporate bond and foreign currency activity.
Pre-tax profit before goodwill and integration costs for the six months ended June 30th rose 12 per cent to £3.85 billion, Royal Bank said in a statement. Total revenue rose 20 per cent to £10.94 billion.
Analysts were expecting profit of about 3.88 billion pounds, according to a Reuters poll of 10 analysts. Estimates ranged from £3.83 billion pounds to £4.08 billion.
The bank also said it agreed to buy Lynk Systems Inc., a US merchant acquisition business, for $525 million to add to its Citizens Financial commercial bank in the United States.
Chief executive Mr Fred Goodwin said the benefits of the acquisitions would continue next year and beyond, and that the company was confident it could maintain its growth.
Royal Bank's shares rose 1.2 per cent to 1,559 pence on Monday, but the stock has fallen 5.3 per cent this year, making it the fourth-worst performer of the UK's 11 listed banks.