Business

FTSE 100 rebounds as bank shares rise on Lloyds results

Market trader (file picture) Image copyright Getty Images

(Close): Bank shares gave the London market a boost, with shares in Lloyds jumping on news of a special dividend.

At the close the FTSE 100 was up 146 points, or 2.48%, at 6,012.81.

Shares in Lloyds jumped more than 13% after investors welcomed its latest results - despite PPI provisions hitting profits - and news of a special dividend for shareholders.

Lloyds announced a 2.25p dividend per share and a 0.5p special dividend, giving a total payout of £2bn.

Shares in Royal Bank of Scotland, which announces results on Friday, rose 5.47%. And Barclays was up 5.17%.

Telecoms group BT Group ended up 4.6% higher after regulator Ofcom said the company should be overhauled rather than split up, as some rivals had been calling for.

On the currency markets, sterling recovered some ground. Against the dollar, the pound strengthened by one fifth of a cent to $1.3946, and edged up 0.03% against the euro to €1.2640.

More on this story