RBS share rise helps Footsie bank gains

Market report Perry Gourley

London’s top-flight index pushed higher as investors snapped up shares in the Royal Bank of Scotland (RBS) after the lender swung to profit.

The FTSE 100 Index closed up 18.53 points to 7,505.03, with RBS sitting among the biggest risers after the bank chalked up its third consecutive quarter in the black.

The bank, which is still 72 per cent owned by the taxpayer, beat expectations by recording a £392 million profit for the quarter to 30 September, which compares with a £469m los sin the same period last year.

Shares in the state-backed lender climbed 4.8p to 285.8p, with chief executive Ross Mcewan again signalling that the lender is moving on from its troubled past.

Across Europe, Spain’s Ibex was down 1.45 per cent as the country faces a territorial showdown after Catalonia’s regional parliament voted to establish an independent republic. David Madden, market analyst at CMC Markets UK, said: “The political outlook is very uncertain, and investors are getting more nervous by the minute.”

British Airways-owner International Airlines Group posted rising third-quarter profits, as the firm overcame the extreme weather and terrorism that has impacted the sector. However, shares slumped nearly 7 per cent, closing down 46.5p to 623.5p.

The biggest risers on the FTSE 100 index were Reckitt Benckiser, up 205p to 6,845p, Experian, up 43p to 1,598p, and Compass Group, up 38p to 1,638p. The biggest fallers included Glencore, down 11.6p to 367.2p.