HSBC has reported pre-tax profits of £7bn for the first six months of the year - more than double its profits for the same time last year.

In a sign of the improving conditions in the sector HSBC said the amount of money set aside to cover bad loans had fallen to $7.5bn - the lowest level since the financial crisis began in 2008.

However, these figures are angering small business owners as many believe that banks are not lending to viable small companies.

Chancellor George Osborne yesterday added to calls for banks to lend more to businesses in order to sustain the economic recovery.