Royal Bank of Scotland (RBS) announced profits will be well ahead of forecasts of £9.9bn despite a £1.5bn sub-prime hit.
The Times reported shares in the bank soared on the news surged 7.46% higher, up 34.75p at 500.5p in early trading.
Royal Bank of Scotland (RBS) has promised to deliver pre-tax profits of more than £10bn this year, despite taking a £1.5bn writedown against its exposure to American sub-prime mortgages and leveraged loans.
RBS chief executive Sir Fred Goodwin says: "It hasn't been beer and skittles this year, but we are anticipating a strong set of results.
"While we have seen some credit market deterioration, there have been a number of planned gains during the period [this year]. If you ignore the gains and the writedown we still expect to be comfortably ahead of consensus."
The Government came under fresh pressure to resolve the crisis surrounding Northern Rock after the Liberal Democrats pushed for Downing Street to consider nationalising the stricken lender, The Daily Telegraph reports.
Vincent Cable, acting leader of the Lib Dems, said nationalising the bank "temporarily" would be the "common sense solution" to protect taxpayer money.
Cable told Parliament the Prime Minister Gordon Brown was "petrified by indecision", the Telegraph says.
The Chancellor responded saying all options are open but he stressed the Government was concentrating on finding a private buyer for the bank. The Treasury has drafted a nationalisation bill for Northern Rock which it could use to bring it into public ownership should all options to sell the bank fail.
The White House is set to reveal a sub-prime rescue plan for struggling US homeowners today, according to The Guardian.
It reports President Bush will wade into the sub-prime mortgage crisis with a rescue package freezing interest rates on certain high-risk home loans for up to five years.
However, it says while the deal with lenders will freeze interest rates on 'teaser' loans, critics say the crisis now extends to other borrowers.IFAonline
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