The cantonal bank of Vaud - a leading player in the French speaking part of Switzerland - reports that gross profits soared to SFr226.7 million ($132 million) in the first half of the year, a rise of 29.6 per cent over the same period last year.

In a communiqué, the bank said the results were due to a strong rise in commission operations, together with an increase in business on the balance sheet.

It added that the bank's principal subsidiaries, whose activity is centred on asset management, saw a "remarkable advance in business volumes and earnings".

In its outlook for the rest of the year, the bank said prospects were favourable. It predicted that economic growth would remain strong, and that the financial markets would not be affected by the rise in interest rates, because these had been taken into account in the first six months of the year.

The bank therefore expects to achieve similar results in the second half of the year.

However, the statement added that despite the improvement in the economy in canton Vaud, the requirements for provisions would remain at a high level.

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