Tesco Bank has posted a 65.9% increase in profits for the first half of 2011/12 compared to the same period last year.
This takes Tesco Bank's profits for the first half of the year to £44m through sales of loans, insurance, credit cards and savings accounts.
However, the bank did not escape the PPI sales debacle earlier this year, due to its joint PPI venture with RBS.
Its profits would have been £101m without the extra provision it needed to take in case of future PPI mis-selling claims.
"Whilst the level of claims to date has been modest (£16m), as a result of this review, we have decided to increase our current provision, which was originally set up in 2009, by a further £57m to £92m," the results statement said.
Savings accounts sold by Tesco bank were up 1% during the half, whilst credit card customers increased by 4% and motor insurance by 3%.
Balances on savings accounts increased by 2% and those on credit cards by 3%. Tesco credit card retail spend grew 14.2%.
The bank plans to roll out a range of new products including mortgages and current accounts early next year in a bid to create a full-service retail bank.
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