Bank shares popular among investors

Britain’s private banking services clients and other investors remain positive about financial stocks, it has been revealed.

Research from Fool.co.uk shows that 64 per cent believe that shares in banks are ’good buys’, while just 24 per cent think the opposite.

Over recent months the stocks had suffered losses in value due to the credit crunch and uncertainties among investors over the stability of the financial system.

However, the bank shares have begun to rise in value again, due to increasing investor confidence that the worst of the crisis is over.

Stuart Watson, investing editor at The Motley Fool, said: ’In the space of just a few months, banking shares went from being boring, predictable blue chips to unmitigated disaster areas.’

He added: ’We need a healthy banking sector if the economy is to prosper.’

The popularity of bank shares could increase further by the end of this week, with many UK financial firms expected to declare big profits.

Barclays was first to announce half-year results this morning - and said that profits had increased by eight per cent to almost £3 billion over January-June.

Shares in the bank rose by around nine per cent on the news.ADNFCR-2318-ID-19293585-ADNFCR