UK bank shares rally over 60% in three months

Royal Bank of Scotland (RBS) shares have delivered an impressive return of 60% in the last three months amid a resurgence in risk appetite.

The bank this week announced losses widened to £2bn in 2011, in part because of the impact of the sovereign debt crisis which saw it write down the value of its debt holdings by £1.1bn. In early trading this morning, shares hit a peak of 28.95p, the highest level since early August last year. The peak means shares have jumped more than 60% from the November low of 17.34p, seen after the market sold off. The gain by RBS shares vastly outstrips the rise in the wider market, with the FTSE 100 climbing 16% over the same period. Other banks - including Lloyds, which today reported a ...