BAT Industries, the tobacco and financial services group, exceeded City expectations yesterday when it reported a 12% surge in its interim profits. The company made £1.33 billion before tax in the six months to June 30, compared with £1.19 billion in the first half of 1995. The growth was led by the tobacco business, where trading profits rose by 7% to a record of £798 million. Operating profits for its financial services business, which includes UK insurers Allied Dunbar and Eagle Star and Farmers in the United States, rose by a more modest 3% to £554 million.