The bank reported a 12% rise in profits for 2002 and said it is well-placed to cope with the uncertain economic outlook.

RBS, Britain's second biggest bank, also reported a 15% increase in dividend payments to shareholders - a sharp contrast to the raft of dividend cuts seen by rivals in recent weeks.

Profits for the year to December 2002 rose to �6.45bn ($10.2bn) from �5.8bn a year earlier.

Overseas ambitions

RBS said it was reaping the benefits of its takeover of NatWest in 2000, which led to significant cost savings and boosted its income.

And the group said it was still keen on acquiring other businesses, particularly in the US.

"Yes, we've indicated that acquisitions in the United States definitely look attractive to us," said chief executive Fred Goodwin.

Mr Goodwin said that while the world economy remains uncertain, RBS would weather the storm and deliver "superior sustainable value".

"It is clear that the strength, diversity and flexibility of our group present many options for future growth not only in the UK, but also in the US and continental Europe."

The bank's upbeat projections were a sharp contrast to rivals Lloyds TSB and Barclays which both reported falls in profits earlier this month and to Abbey National's near �1bn loss reported earlier this week.