The UK mortgage bank Bradford & Bingley has reported a 22% increase in profits for the first six months of the year.

But despite the rise, it has confirmed that about 500 jobs will go by the end of the year, as it combines some of its operation centres in southern England.

The company announced pre-tax profit of �119.7m ($173.3m), at the top end of analyst expectations.

The bank, which employs about 6,900 people, says that it wants to rationalise its property portfolio in order to save �30m by the end of next year.

The job cuts come on top of 300 redundancies announced in February, when it closed nearly 70 branches and estate agencies.

Third party selling

Bradford & Bingley is the smallest of the UK's listed mortgage players, with a market value of �2.24bn.

The company converted from a mutual building society and floated on the London Stock Exchange in December.

It is re-inventing itself as a seller of mortgages from other banks and building societies and moving away from lending itself because of the tough competition and slim margins.

At 1544 in London (1444 GMT), shares in the group were down 9p at 328p.

The bank's shares have risen 38% since their debut of 244p in December.