Northern Rock has announced a 14% rise in half-year profits, powered by good performance across all sectors of its business.

Pre-tax profit in the six months to the end of June totalled £274m, up from £239m a year earlier.

However, the figure was below market expectations of £277m and Northern Rock said it was raising its full-year profit growth target from 15% to 20%.

“We achieved all of our strategic targets, with our performance very much in line with the guidance we gave at the start of the year,” said Northern Rock chief executive Adam Applegarth.