Mutuals and building societies have doubled their net mortgage lending over the last year, figures from the Building Societies Association (BSA) show.
The Royal Bank of Scotland Group reported a small £9m net profit over the first half of the year, after recording a £1.14bn pre-tax profit in the six-month period.
Business secretary Vince Cable said banks should be 'very, very self-conscious' about how they reward staff and investors and refused to rule out a tax on bank profits.
Gross mortgage lending climbed 6% to an estimated £9.2bn in February, the Council of Mortgage Lenders (CML) says.
Gross mortgage lending jumped significantly in Q3 compared with the previous quarter as signs of an improving housing market continue, Council of Mortgage Lenders (CML) data shows.
Net mortgage lending rose by an £5.7bn last month, the second highest figure on record, according to the latest figures from the British Banker's Association (BBA).