Citizens Financial profit up 18% in 1st half of '06

The Royal Bank of Scotland, parent company of Providence-based Citizens Financial Group, said net income rose 18 percent to $5.5 billion in the first six months of the year, propelled by strong earnings from corporate banking. Revenue rose 10 percent to $24.5 billion. At Citizens, pretax operating profits grew just 3.6 percent to $1.5 billion, as rising US interest rates dragged on profits. Citizens' revenue increased 3.5 percent to $3 billion. Citizens' net interest income remained essentially flat during the six months at $1.9 billion, though its noninterest income -- which includes items such as banking fees and credit-card income -- grew 11 percent to $1 billion. Companies based in the United Kingdom are required to report earnings only twice a year. (Sasha Talcott)

White Mountains Insurance Group said it will raise as much as $500 million by selling shares of unit OneBeacon Insurance Group in an initial public offering. Boston-based OneBeacon sells home and auto insurance as well as coverage for industries including shipping and farming. Lehman Brothers Inc. is managing the sale with assistance from Banc of America Securities LLC. (Bloomberg)

Partners HealthCare third-quarter profits were dramatically boosted by a $186 million licensing settlement paid by Amgen Inc. to Massachusetts General Hospital for Enbrel , a rheumatoid arthritis treatment the hospital helped the drug company develop. Without the Amgen payment, profits for the quarter ended July 31 would have fallen to $64 million from $69 million in the same quarter in 2005. The decline was related to weaker investment performance, said Peter Markell , Partners chief financial officer. Partners is the parent corporation for Mass General and Brigham and Women's Hospital . (Christopher Rowland)

Newton accounting firm Rodman & Rodman PC is offering tips to consumers who want to take advantage of the Massachusetts sales tax holiday Aug. 12 and 13. Most single items not exceeding $2,500 will be tax free. Bundled items, such as computer packages that include computer, monitor, and printer in a single sales price only qualify if the price of the entire bundle is less than $2,500. Prior sales and layaways do not qualify. Meals, gas, and tobacco products are among items that remain taxable. All services are excluded. Airline and sports events tickets are considered services. (Chris Reidy)

Four recording companies sued the operators of the file-sharing program LimeWire alleging copyright infringement. The suit claims the firm encourages users to trade music without permission. Lime Group LLC, its top executives, and its subsidiaries who designed and distribute LimeWire are named in the federal lawsuit, the Recording Industry Association of America said. Record labels owned by Sony BMG Music Entertainment, Vivendi's Universal Music Group, Warner Music Group, and EMI Music are behind the complaint. (AP)

Toyota Motor Corp., the world's second-largest automaker, reached a settlement with an employee who accused its former North American chief executive of sexual harassment. Terms of the agreement with Sayaka Kobayashi, who was an assistant to CEO Hideaki Otaka, aren't being disclosed, said a company spokesman. (Bloomberg)