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LONDON - Bank of Scotland plc reported a 59% increase in profit before tax for the first half of 2025, reaching £680 million compared to £427 million in the same period last year, driven by higher total income and despite increased operating expenses.
Total (EPA:TTEF) income rose 29% to £2,634 million for the half-year, with net interest income increasing to £2,281 million from £1,833 million a year earlier. This growth was attributed to higher average interest-earning assets and improved margins.
Net fee and commission income grew substantially to £177 million, up from £98 million in the first half of 2024, while net trading income rose to £114 million from £52 million, reflecting favorable rate movements.
Operating expenses increased 18% to £1,894 million, which the bank said reflected inflationary pressures, strategic investments including planned higher severance costs front-loaded into the first quarter, and business growth costs. These were partially offset by cost savings and continued cost discipline.
The bank’s impairment charge rose to £60 million from £4 million in the comparable period, which had benefited from improvements in the economic outlook.
Total assets increased 2% to £338,088 million from £331,084 million at the end of 2024, with loans and advances to customers rising by £6,726 million to £307,515 million, primarily due to growth in UK mortgages.
Customer deposits increased by £2,580 million during the period, which the bank attributed to strong performance during the ISA season.
The bank’s common equity tier 1 capital ratio stood at 13.3% as of June 30, 2025, slightly down from 13.5% at the end of 2024.
Bank of Scotland, a member of the Lloyds Banking Group (LON:LLOY), declared an interim dividend of £250 million, compared to £650 million in the first half of 2024.
This information is based on the bank’s press release statement for its 2025 half-year results.
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