Good business lifts Northern Rock

Northern Rock has missed analyst targets

UK bank Northern Rock has unveiled a 14% rise in half-year profits, driven by growth across its business.

Underlying pre-tax profit in the six months to the end of June totalled £274m, up from £239m a year earlier.

However, the profits were below average market expectations of £277m. Northern Rock said it was raising its full-year profit growth target from 15% to 20%.

Northern Rock's gross lending during the first half of the year rose 28% to £14.8bn, a new record for the bank.

"We achieved all of our strategic targets, with our performance very much in line with the guidance we gave at the beginning of the year," said Northern Rock's chief executive Adam Applegarth.