UK banks mainly higher at markets respond to EU stress test

A Barclays bank office is seen at Canary Wharf in London, Britain May 19, 2015. REUTERS/Suzanne Plunkett/File Photo

LONDON (Reuters) - Shares in Britain’s biggest banks rose on Monday as investors responded with relief to results of this year’s European Union stress test of leading banks.

The European Banking Authority (EBA) published the outcome of its health check of 51 lenders from across the EU on Friday evening after markets closed.

“Overall, we think the results of the EBA stress testing exercise are essentially a non-event for the UK banks,” analysts at Shore Capital said in a note.

There was no pass or fail mark for the stress test, though the core capital ratios of all four top UK lenders were well above last year’s pass threshold of 5.5 percent.

Shares in Barclays were up 0.5 percent at 0707 GMT, with HSBC 0.4 percent ahead.

RBS was flat, with Lloyds up 1.3 percent.

Britain’s blue chip FTSE 100 share index was 0.4 percent higher.

The key test for UK lenders will come towards the end of the year when the Bank of England releases results of its own stress test of British banks, analysts said.

Reporting by Huw Jones, editing by Sinead Cruise