ROYAL Bank of Scotland (RBS) added another £3.38bn to the profits accumulated by the UK's biggest banks in the first six months of the year.

The group, whose brands include NatWest and insurance business Churchill, increased bottom-line profits by 17 per cent on a year earlier as it tries to beat the £6.16bn recorded for the whole of last year.

The performance from RBS, which was at the lower end of market expectations, benefited from recent acquisitions and the strength of the economy as the appetite of consumers for borrowing showed no signs of letting up.

The figures from the UK's second largest bank come a day after global banking business HSBC posted record half-year profits of £5.62bn.

Fred Goodwin, RBS chief executive, said he was content with prospects for the remainder of the year, despite the likelihood of more interest rate rises.