London - Shares in leading British banks rallied strongly on the London Stock Exchange Monday following news of the US government's bail-out of mortgage giants Fannie Mae and Freddie Mac.

Halifax Bank of Scotland (HBOS) was the strongest performer of four banks showing gains of 10 per cent or more.

HBOS shares gained 13 per cent, rising to 310.25 pence, followed by a rise of 26.25 per cent for Royal Bank of Scotland and 37.5 per cent for Barclays.

Lloyds TSB added 28.25 pence to its share price, while banking giant HSBC surprised markets by a moderate rise of just 5 per cent, analysts said. (dpa)