The state-backed lender posted stronger-than-expected half-year pretax profits of 2.7 billion pounds, above forecasts of 2.3 billion pounds according to a company-provided average of analyst forecasts.

The figure was up 48% on 1.8 billion pounds the previous year, largely lifted by a 700 million pound boost from selling its stake in Saudi bank Alawwal.

The bank, which gave no update on its search for a successor to outgoing CEO Ross McEwan, said a tough outlook would make it unlikely to meet its goal of achieving a 12% plus return on tangible equity by 2020, although said this remained its medium term goal.

The lender announced an interim dividend of 2 pence per share and a special dividend of 12 pence.