Lloyds Banking Group has suspended its share buyback after a last-minute rush of compensation claims for mis-sold payment protection insurance (PPI), taking its total costs for the scandal to £21.8bn (€24.4bn).

Irish banks are facing into a key two weeks to convince investors about their investment merits after a turgid year when their shares have again lagged most of their European counterparts.

Clydesdale and Yorkshire Banking Group (CYBG) — which is headed up by former AIB CEO David Duffy — has laid out plans to challenge Britain’s big banks, betting that a re-brand as Virgin Money and growth in business banking will help it to shake up the market.

The UK Labour Party would launch a consultation to break up state-owned Royal Bank of Scotland, which owns Ulster Bank, into smaller local banks, the party said at the launch of its election manifesto.

The FTSE 100 Index has closed above 7,500 for the first time as higher-than-forecast inflation data and confidence over Britain's prospects under a Tory government drove stocks higher.