Shares in British banks were broadly up in morning trading on the FTSE 100 after stronger than expected GDP figures for the second quarter helped offset fears about the results of stress tests due to be released today.
Under the tests banks are required to imagine a "doomsday" scenario, such as another credit crunch, and see if they would have enough capital to survive. Most banks are expected to pass the tests, however in early trading investors felt nervy about the results, dragging banking shares a little.
However at 9:30 the Office for National Statistics published its first estimate for second quarter GDP, with growth of 1.1 per cent, higher than the 0.5 per cent expected by analysts and the 0.3 per cent growth reported for the first quarter.
By 09:54 shares in Lloyds Banking Group were up 1.32 per cent to 63.15 pence per share, RBS shares rose 1.50 per cent to 45.37 pence per share and Barclays shares increased 0.13 per cent to 304.05 pence per share.
However HSBC shares declined 1.10 per cent to 647.80 pence per share.
Overall the FTSE 100 was down 0.02 per cent to 5,312.76.