Big, broad banks are beautiful

David Kuo, Director at the popular financial website The Motley Fool - Fool.co.uk, says: "We are pleased that Barclays has resumed its dividend. But at just 1p a share, the payout is both insulting and disappointing.

"Dividends represent real cash in the pockets of shareholders. Consequently, the paying of meaningful dividends is a discipline that Barclays must re-adopt quickly if it is to regain investors' trust. It must stop pussyfooting around trying to appease over bonuses and dividends. For now, HSBC looks the better choice for investors with a prospective yield of 3.1% compared to Barclays' 2.2%.

"Profits for the first nine months at both HSBC and Barclays reveal the importance of broad diversification. The two banks have spread their risks across business areas and geographic regions and have now reaped the benefits of this.

"The Government therefore needs to revisit its strategy to force the breakup of Lloyds Banking Group and Royal Bank of Scotland. The UK needs big, broadly diversified banks - not a smattering of half-banks that are unable to compete in a competitive market place."