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Banking shares a good buy for 63% of investors

03 August 2009 / by Rebecca Sargent

More than six in 10 private investors believe that banking shares are a good buy, according to research carried out by Fool.co.uk.

In fact, just 24 per cent of investors questioned said they would be steering clear of bank shares as an investment, despite what Fool.co.uk refers to as ''the great banking bail-out', which has seen Lloyds, Halifax, Bank of Scotland and RBS suffer.

However, banking shares should be bought with a long-term investment strategy in mind, according to the 63 per cent of people with faith in bank shares.

Commenting on the research, 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. Then came the bailouts, the eye-popping pensions and finally the Asset Protection Scheme to shore up the system.

"The worst could well be over for banking shares and we're now on the long, slow slog to recovery. Despite their villainous excesses of the last few years, we need a healthy banking sector if the economy is to prosper," he added.

Barclays today announced that its half year profits hit almost £3billion, while Lloyds, RBS and HSBC are due to announce theirs this week, which, according to Mr Watson, "will give us an excellent picture of just how robust the banking revival really is."

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