Shares in British banks were mixed on the FTSE 100 in morning trading ahead of the Coalition government's Comprehensive Spending Review, the details of which are to be announced today.
The Chancellor of the Exchequer, George Osborne, is expected to announce cuts worth £89 billion, resulting in job losses in the public sector of 490,000.
Both part-nationalised banks, Lloyds Banking Group and RBS saw their shares decline, perhaps in anticipation of a possible announcement on the government's plan for its stake in the two banks, currently at 40 and 80 per cent respectively.
By contrast Barclays and HSBC, which did not require government bailouts during the financial crisis, saw their shares rise.
By 10:10 shares in Lloyds Banking Group were down 0.24 per cent to 70.33 pence per share and RBS shares dropped 1.04 per cent to 46.46 pence per share.
Barclays shares, however, were up 0.42 per cent to 290.05 pence per share and HSBC shares rose 0.29 per cent to 662.40 pence per share.
Overall the FTSE 100 was down 0.08 per cent to 5,699.55.