RBS owns NatWest bank and Direct Line insurance

Britain's second biggest bank, which owns NatWest bank, said it had benefited from stronger turnover.

Chief executive Fred Goodwin said: "We have maintained the momentum that has been evident in our results over the last three years."

However, the size of RBS's profits has sparked some accusations of cashing in at the expense of debt-laden consumers.

'Superior growth'

Liberal Democrat treasury spokesman Vincent Cable said: "It is hardly surprising that banks are making huge profits when consumer debt is approaching a record �1,000bn."

He said: "The banks may well boast about their billion-pound profit margins but they are making money at the expense of others who are getting deeper and deeper into debt."

RBS's pre-tax profits for 2003 were a record for the company, representing a 29% rise from the previous year.

John McFall, chairman of the House of Commons Treasury Select Committee, questioned whether banks and credit card companies were taking their social responsibility seriously.

The Dumbarton Labour MP told BBC Radio Scotland: "The big four (banks) earn �50,000 a minute profit and the Royal Bank of Scotland today indicates that it is making �300 from each of its 20 million customers."

NatWest boost

RBS, which owns insurance firms Direct Line and Churchill, said it was confident of maintaining "superior growth" over the coming year.

Mr Goodwin said the integration of High Street bank NatWest, which RBS bought in 2000, had been completed and was generating higher than expected revenues.

But the firm played down the possibility of making a large European banking acquisition in the near future.

RBS added that low UK interest rates had put a squeeze on income from customer deposits, reducing the profits contribution of its retail banking division.

Much of the company's turnover comes from providing corporate banking services.

RBS's pre-tax profits before goodwill amortisation and integration costs rose 11% to �7.15bn.