(Bloomberg) -- British shares erased most of their losses as concerns over lenders eased, with the FTSE 100 Index posting biggest quarterly advance since 2013.
The benchmark gauge slipped 0.3 percent on Friday, trimming a decline of as much as 1.6 percent. It rose 1.7 percent in September, a fourth straight monthly rise, taking its quarterly gain to 6.1 percent.
Barclays Plc and Royal Bank of Scotland Group Plc, which led FTSE 100 declines in the morning, erased their retreats, while Lloyds Banking Group Plc slipped 1.7 percent. UBS Group AG analysts said the nation's biggest mortgage lender may take a 1.6 billion-pound ($2.1 billion) charge in third-quarter earnings to cover a pension deficit and customer compensation. Services provider Capita Plc, which sank a record 27 percent on Thursday, dropped another 4 percent, extending its lowest price since 2012.
Housebuilders Barratt Developments Plc and Persimmon Plc gained more than 4 percent after data showed better-than-forecast home-price data.
The FTSE 250 Index of mid-cap companies reversed declines and ended little changed on Friday, while the FTSE Small Cap excluding investment trusts index lost 0.3 percent. The regional Stoxx Europe 600 Index was little changed.
To contact the reporter on this story: Cecile Vannucci in london at cvannucci1@bloomberg.net. To contact the editor responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net.
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