Shares in British banks were mixed on the FTSE 100 in morning trading after Greece looked ready to come to an agreement that will see it impose greater austerity measures in return for a second bailout.

Greece is expected to announce further austerity measures and a speeding up of its privatisation programme today.

The news however does not appear to have been entirely welcomed in Greece, where last night thousands of protestors gathered outside the national parliament building to express their displeasure in strong terms.

By 09:30 shares in Lloyds Banking Group were up 0.24 per cent to 48.62 pence per share and HSBC shares increased 0.54 per cent to 630.60 pence per share.

However RBS shares dropped 0.38 per cent to 41.60 pence per share and Barclays shares fell 0.32 per cent to 264.85 pence per share.

Overall the FTSE 100 was up 0.23 per cent to 5,861.34.