Numerous banks like Northern Rock, HSBC, Standard Chartered and Lloyds all released 2010 first-half results showing overall profits in their operations that were good in their field of activity.  The last two banks to issue their half-year results were Barclays Group and the Royal Bank of Scotland Group (RBS).

Barclays Group reported that profits before tax for the first six months of 2010 amounted to £3.95 billion, up 44% last year, with total income of £16.58 billion, up 8%.

Lower gross income in the Global Retail Banking sector reflects weak economic growth due solely to these reduced impairment charges. The lower income would reflect an exposure to Spain where Barclays is the largest foreign bank and the sixth largest overall with 550 branches struggling with large budget deficits and severe unemployment.

Barclays highlighted that their gross new lending to UK businesses and households in the first six months, totalled £18 billion. Ten billion went to households and small businesses and £7 billion was taken with the acquisition of Standard Life Bank in January 2010.

Chief Executive, John Varley said that the Bank's "universal model" had proved best suited in weathering the financial crisis and should not be broken up and this was really a warning to the new government-appointed Commission on banking .

RBS reported a stronger Retail and Commercial Banking performance than Global Banking and Markets performance during the second quarter "reflecting a weaker capital markets environment".

Stephen Hester, RBS Group Chief Executive in an interview with Cantos Productions said that RBS's core businesses are strong and getting stronger and the investment banking sector had experienced volatility and difficulty, particularly in the second quarter.

Regarding pay and bonuses, the CEO said that RBS has been at the forefront of pay reform in banking, that only 10% of staff was affected by the controversial bonus issue but the Bank took a responsible decision.

Both Barclays and RBS benefited from their broad diversity of operations.  Barclays' results were enhanced by its Barclays Capital investment arm while the opposite appears to be the case for RBS which had a poorer investment wing.