London-listed banks boost the City as earnings season rumbles on

London-listed banks continued to boost the City this morning as lenders’ earnings season presses on full-steam ahead.

The capital’s premier FTSE 100 index climbed 0.88 per cent to 7,491.03 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, rose 0.95 per cent to 20,631.69 points.

Two of the UK’s biggest banks posted a bumper set of first quarter results that boosted sentiment toward the sector.

Asia-focused Standard Chartered beat the City’s profit estimates, sending its shares soaring over 14 per cent during opening exchanges.

Barclays, the only British lender with a strong presence in the investment banking market, pushed back its share buyback programme for a second time, it announced today, after it notched a heavy loss from a trading blunder.

Despite the delay, traders poured into the ledner after revenues beat projections, lifting its shares 2.06 per cent.

Rival banks HSBC and Lloyds, both of which have already updated markets on the first quarter earnings, climbed over 2.5 per cent apiece.

UK banks’ earning season has been mired by senior management warning that the cost of living crunch is likely to lead to an uptick in defaults as a result of household finances being pinched.

The prospect of the Bank of England pushing through more rate hikes to tame a 30-year high inflation rate of seven per cent has brightened the outlook for the sector.

Higher rates boost banks by allowing them to charge more for loans.

Bookkeeper 888 Holdings was among the best risers on the FTSE 250, advancing 3.3 per cent.

The pound edged 0.07 per cent lower against the dollar to buy $1.2538.