British retail bank Alliance & Leicester said today that investors could look forward to a share buyback this year, as it reported a 12 per cent rise in half-year profits that was at the top end of forecasts.
Alliance & Leicester, one of the smaller banks in the FTSE 100, said interim pre-tax profits rose to £233 million sterling, helped by record low interest rates in Britain which have fuelled the housing market and consumer borrowing.
Alliance & Leicester, the subject of constant takeover speculation, said it would buy back shares in the second half of this year to use its excess cash, and added it was on track to meet targets for growing revenue and cutting costs this year.
The bank lost a five-year legal shield from hostile bids this year, but the former building society has consistently denied it is vulnerable to a takeover.