UK bank shares fall despite pass in EU stress tests

 
Tim Wallace
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SHARES fell in all the big four British banks yesterday, despite the group passing the European Central Bank’s stress tests.

The UK’s tests, out in December, will be tougher, subjecting lenders to a simulated 35 per cent fall in house prices – likely to be especially hard on Lloyds and RBS.

Lloyds came closest to failing the European tests, and its shares fell 2.82 per cent on the day. Barclays’ fell 1.99 per cent, followed by RBS at 1.37 per cent and HSBC at 1.24 per cent.

Analysts said the tests understate the strength of the banks, as they use data from the end of 2013, and banks have improved since then.

By contrast, Italian banks fared very badly in the tests.

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