Banks make £1,000 profit every second

THE High Street banks earned almost £1,000 a second last year, it has emerged. They are due to unveil record total profits of £30bn, say analysts.

The astonishing figure is up 20% on the previous year and will dismay their millions of customers.

The banks are accused of profiteering on the back of a tide of debt - which hit £1trillion last year - through rip-off interest rates, charges, heavy penalty fees and irresponsible lending.

Northern Rock started the surge yesterday with pre-tax profits of £431.2m, up from £386.8million a year ago. City analysts expect HSBC to top the profits league at the end of the month with a figure close to £10bn. Royal Bank of Scotland, which also owns NatWest, is predicted to make more than £7bn.

Barclays and Halifax Bank of Scotland are reported to have made about £4.5bn each. Lloyds-TSB is expected to be close to £3.5bn.

But the increase in profits has coincided with a surge in the number of bankruptcies and in the number of debtors seeking help from advice groups.

Eddie Weatherill, of consumer group the Independent Banking Advisory Service, called for the Government to impose a windfall tax on the big banks.

'These profits are the result of naked greed,' he said. 'The Government made big promises about cracking down on rip- offs but has delivered nothing meaningful. A windfall tax is the only way to make this industry sit up and start to give customers a fair deal.'

The banks insist they are making a huge contribution to society through, for example, the number of staff they employ and the taxes they pay. Some argue they make most of their profits from overseas or corporate business and not personal banking.