Whisper it, but the big banks are finally getting their houses in order

By and large it was a good week for the big banks — underpinned by encouraging news from the wider economy, in which every little uptick brings a few more zombie borrowers back to the land of the living.

Lloyds returned to profit, promised to start paying decent dividends again and declared itself oven-ready for return to the private sector, with the market anticipating an immediate sale to institutions of a first tranche of the taxpayers’ 39 per cent stake. HSBC reported varied performance around the world but still clocked up a fat result for the half-year — and asked the Vatican to close its account as part of a sweep against money laundering.

RBS’s Treasury masters took note of James Forsyth’s recent essay on the ‘colonial’ takeover of British public life and picked a sensible Kiwi, Ross McEwan, to succeed Stephen Hester as chief executive — and on a smaller pay packet.