Bank profits attacked as debt grows

The big four high street banks have been accused of exploiting Britain's debt-laden households as they prepare to unveil total profits of £50,000 for every minute of last year.

The Consumers' Association said the four - HSBC, Lloyds TSB, Barclays and Royal Bank of Scotland - used their " stranglehold" on the high street to sell expensive loans that drive consumers further into debt.

The accusation comes as Royal Bank of Scotland, which owns NatWest, is expected to announce record profits of more than £6 billion this week.

Lloyds TSB is projected to make pre-tax profits of more than £4 billion, and the HSBC group £13 billion. Barclays last week reported a 20 per cent jump in profits to £3.8 billion.

Mick McAteer, principal policy adviser at the Consumers' Association, said: "We have always been concerned that [banks] exploit the stranglehold they have on the high street.

"We don't think the big four are taking their social responsibilities seriously."

Liberal Democrat Treasury spokesman Vincent Cable said the banks' record profits mirrored the growing amounts of household debt.

Consumers last year added £120 billion to their existing debts, which now total £934 billion, most of it in mortgages.