FTSE 100 jumps on RBS results

The FTSE 100 has jumped following Royal Bank of Scotland's biggest corporate loss in history.

The UK's benchmark index rose 2.15 per cent to 3,931.84 by 09:25 GMT, led by a 29.87 per cent surge in RBS shares to 30p.

Although the bank revealed losses of £24 billion for 2008, a record loss, analysts had feared the loss could total £28 billion.

The bank also released details of the asset protection scheme, which it has agreed to join, reassuring investors the bank is not headed toward full nationalisation.

Shares in Lloyds Banking Group also rose, and were up by 22.3 per cent to 70.2p. Lloyds is also expected to take part in the government's asset protection scheme, which will see around £500 billion of assets insured by the taxpayer.

Most stocks on the list of blue-chip firms were trading higher, but concerns over falling property values saw residential and real estate group Hammerson take a 30.16 per cent fall in shares.