MARKET TALK: RBS, Lloyds May Be Biggest Stress-Test Gainers

26th Jul 2010 09:56

0856 GMT [Dow Jones] Lloyds Banking (LYG) and Royal Bank of Scotland (RBS) could be biggest gainers among U.K. banks from stress test results, which could provide a lift to debt markets, says Exane BNP Paribas. "The bigger issue for U.K. banks is the extent [if any] to which the CEBS stress test exercise helps to re-establish confidence in debt markets and thereby improve, over time, the availability [and pricing] of term wholesale funding," adding RBS and Lloyds the most reliant on such funding. Keeps RBS at neutral, 50p target price; Lloyds at outperform, 80p target. Shares on both banks +1.8% at 46p, 65p, respectively. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 26, 2010 04:56 ET (08:56 GMT)