Shares in British banks were broadly up on the FTSE 100 in morning trading despite a report suggested that Portugal will need a larger EU/IMF bailout than was previously expected.

The EU initially set a bailout target of 80 billion euros, however a report in the Diario Economico said that policy makers in the EU and IMF have already concluded that a bailout would have to be closer to the 100 billion euro mark.

After going to the EU for a bailout, the Portuguese government resigned. An election for a new government will be held on 5 June, although it is reported that the EU wish to seal the terms of the bailout before a new government can come to power to challenge it.

By 09:15 shares in Lloyds Banking Group were down 0.35 per cent to 59.04 pence per share,

However RBS shares increased 0.29 per cent to 41.59 pence per share, Barclays shares rose 0.80 per cent to 284.55 pence per share and HSBC shares climbed 0.32 per cent to 657.50 pence per share.

Overall the FTSE 100 was up 0.26 per cent to 6,085.79.

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