THE UK’s part-nationalised banks saw contrasting fortunes today as Royal Bank of Scotland and Lloyds Banking Group unveiled fundraising and break-up plans.
Lloyds was one of a handful of blue-chips in positive territory - up 2% or 1.8p to 86.8p as investors welcomed its record £13.5 billion rights issue and news of improving conditions on bad debts.
But RBS lagged 0.9p lower at 37.75p after the Government confirmed plans to pump in £25.5 billion, while the wider FTSE 100 was 63.3 points lower at 5041.2 after following Asian markets down.
Losses for heavyweight mining stocks - led by silver mining firm Fresnillo, off 25.5p at 743p - dragged the top flight lower, while further bad news at Swiss bank UBS kept the clouds firmly over the banking sector.
Lloyds aside, HSBC was 16.9p off at 673.1p and Asian-facing Standard Chartered fell 40.5p to 1482.5p. Barclays slid 2.35p to 327.65p.
Defence and engineering giant Rolls-Royce was also a heavy faller, losing 14.1p to 437.6p despite a steady-as-she-goes trading update in line with previous guidance.
But chief executive Sir John Rose warned there was "no evidence yet of a sustained and general return to growth" across its markets.