Royal Bank of Scotland corporate banking and financial markets profits rose by 17% to £2bn (€3bn) in the first half of 2004 on the back of strong fee and dealing revenues and lower provisions for bad debts.

The strong performance leaves the division, which includes corporate and commercial banking, treasury and capital markets, structured and leveraged finance and trade finance, well positioned to outstrip the £3.6bn in profits generated in the whole of 2003.