Banks' revival: 'Results are light at the end of the tunnel'

The resurgence of RBS follows improved results for all the "big five", with Lloyds Banking Group, parent of the Bank of Scotland, unveiling huge profits of 1.6 billion in just six months on Wednesday.

The return of such mind-blowing figures to the banks' balance sheets will inevitably stir mixed feelings among the general public, particularly those businesses and individuals who are now struggling to get credit. The issue of the banks' lending - or lack of it - remains a fraught one and one which the Government must closely monitor and bring pressure to bear on.

Yet these results do serve as a glimmer of light at the end of the tunnel for our desperately beleaguered public finances.

Based on this morning's share price of 52p, the government's 84 per cent stake in the Royal Bank - our stake in it - is worth around 47bn, or more than 1.6bn more than was invested in the controversial bail out.

Over at the Lloyds Banking Group, the news is even better. Our 41 per cent stake was this morning worth a staggering 21.2bn, amounting to a profit of almost 4bn.

When you consider that the share prices are still hovering around 20 per cent of their pre-crash high levels, the possibility of a significant return for the public purse on the initial investment looks increasingly realistic.

That is not to say that this week's profit announcements are unbridled good news for Edinburgh's economy. There is a delicate balancing act to be struck. The bigger profits are based partly on tighter lending criteria and without greater credit availability there are real fears of more firms going to the wall.

The Capital's fortunes have long been closely tied to its two greatest financial institutions, but today we all have a direct stake, literally, in the success of our banking giants.

Snappy dresser

The models who grace the covers of magazines are usually young, slim and female.

So the prospect of 64-year-old retired energy company manager Michael Munro-Dunn doing just after being spotted by a fashionscoutas he walked through the city centre is refreshing.

Knock 'em dead, Michael.