Bank shares boost FTSE 100 following RBS and Barclays news

In other news Barclays, which unlike RBS did not require a government bailout, had its target price raised from 370 pence per share to 440 pence per share by Morgan Stanley, who said the bank represented a good choice for investors in a year which promises increasing regulation for banks.

Shares in all of the “big four” British banks increased following the news.

By 10:57 shares in RBS were up 1.50 per cent to 43.37 pence per share, Barclays shares increased 1.71 per cent to 354.55 pence per share, Lloyds Banking Group rose 0.59 per cent to 57.92 pence per share and HSBC increased 1.29 per cent to 689.80 pence per share.

Overall the FTSE 100 was up 0.56 per cent to 5,625.44.