Private banking profits before tax and exceptional items, however, fell sharply, to £6.6 from £14.9 million. The rise in overall group profits was largely accounted for by a large rise in asset management profit, to £177.3 million, from £66.3 million in the same six months of 2009.

Private banking net revenue was flat year-on-year at £49.9 million (H1 2009: £49.2 million), with higher management fee income offset by a reduction in interest income. Costs were higher due to an addition of people in frontline, business generating roles, the firm said. The profit figure was affected by £4.7 million of doubtful debt provisions, most of which were taken in the first quarter.

Private banking logged net inflows of £1.2 billion in the first half. Private banking funds under management at the end of June were £14.0 billion, up from £12.6 billion at the end of last year.