Bank of Scotland profits rise 14%

Bank of Scotland has reported a 14 per cent rise in profits in the first half of 2000 to £535 million sterling (€887.2 million). Announcing the results yesterday, Bank of Scotland chief executive Mr Peter Burt dashed hopes that it is on the verge of making another acquisition in the UK and played down its attractiveness as a takeover target.

The Edinburgh-based bank with Irish operations has been under pressure to clarify its strategy for growth. Last week it was at the centre of speculation in the UK banking sector that a new acquisition could be on the cards while it was also linked to rumours of a takeover bid itself.

Mr Burt said the strong results showed the bank's growth was not losing momentum and he saw no urgent need to do a deal. The results, which included an exceptional charge of £66 million incurred through its failed bid for NatWest, were better than forecast.

In Ireland, Bank of Scotland reported continued good growth in the mortgage market. The bank said yesterday it has now approved €1.4 billion worth of new mortgages in the Republic since its aggressive entry here last year. Bank of Scotland (Ireland), the former Equity Bank, also achieved strong growth. Operating profits increased by 80 per cent to €8.5 million, benefiting from a first-time contribution from Smurfit Finance which it acquired last year.