U.K.’s banks shook off concerns over Deutsche Bank late in Friday’s session, but commodity companies were stuck in the red and pulled the benchmark index lower.

The FTSE 100 UKX, +0.43% fell 0.3% to close at 6,899.33, after trading with losses of as much as 1.6% earlier in the day. The blue-chip index ended with a 6.1% jump for the third quarter, its biggest quarterly jump since 2013.

The sharp losses at the open came as shares of Deutsche Bank AG DBK, -0.96% DB, -2.39% DBK, -0.94% dropped below 10 euros in Frankfurt for the first time ever on a report that a group of hedge funds were reducing their exposure to the financial major.

Read: Fearful clients pull billions of dollars out of Deutsche Bank

Shares trimmed losses, however, after Deutsche Bank’s chief executive, John Cryan, said in a letter to employees that the report was “causing unjustified concerns,” arguing the bank has “strong fundamentals”.

The lender faces the prospect of paying up to $14 billion to settle civil claims in the U.S. related to its selling of mortgage-related securities.

Later in the day, however, a report by J.P. Morgan Chase & Co. JPM, -1.09% estimated the fine by the Justice Department will be about $5.4 billion, easing fears about the financial health of Deutsche Bank.

Read: Deutsche Bank crisis threatens to roil global markets

The bank’s shares turned higher to close up 6.4%, helping U.K. banks to erase their losses as well.

Royal Bank of Scotland PLC UK:RBS US:RBS rose 1%, Barclays PLC BARC, -0.20% BCS, -1.26% gained 0.3%, and HSBC PLC HSBA, -0.31% HSBC, -1.55% 5, -1.56% eked out a 0.1% gain.

Royal Bank of Scotland PLC UK:RBS US:RBS this week agreed to pay $1.1 billion to the National Credit Union Administration Board in the U.S. to resolve two civil lawsuits over the way it sold mortgage-backed securities in the run-up to the financial crisis.

But RBS still faces other claims over the alleged mis-selling, which took place before its 45.5 billion pound ($58.9 billion) U.K. government bailout in 2008.

Commodity blues: Mining and oil firms, however, spoiled the turnaround mood in London on Friday, pulling back after sizable gains logged on Thursday following OPEC’s preliminary agreement to cut oil production.

Shares of Rio Tinto PLC RIO, -0.65% RIO, -0.30% RIO, +0.80% dropped 2.3%, Glencore PLC GLEN, -0.60% GLCNF, -0.67% lost 1.7% and Anglo American PLC AAL, -2.10% fell 1.3%.

Among oil giants, BP PLC UK:BP BP, +0.87% slipped 0.2% and Royal Dutch Shell RDSB, +3.16% RDS.B, +1.48% dropped 1.2%.

In the currency markets, the pound GBPUSD, -0.11% rose to $1.2988 after a report on gross domestic product showed the U.K. economy grew at an annualized rate of 2.7% in the second quarter, up from an earlier estimate of 2.4%. Sterling bought $1.2972 late Thursday in New York.