FTSE hits 1-month high on stronger financials and miners

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* FTSE 100 closed 0.5 pct higher

* Mid-caps and small-caps hit all-time highs

* Banks, insurers lead gains after Yellen comments

By Helen Reid

LONDON, Feb 15 (Reuters) - Britain's top share index climbedto a new one-month high on Wednesday as investors bet onfinancial stocks after U.S. Federal Reserve Chief Janet Yellen'shawkish tone suggested U.S. interest rates would rise.

A rally in mining shares on the back of stronger metalsprices also lent some support to the broader stock market.

The blue-chip FTSE 100 index closed 0.5 percenthigher after setting its highest level since mid-January.

Both the mid-cap and small-cap indexes hitall-time highs, maintaining momentum from Tuesday's session.Acacia Mining was among top mid-cap gainers, up 3.5percent, after Credit Suisse raised its rating on the stock to"outperform".

The UK banking index rose 1.5 percent to an18-month high, helped by a 1.2 to 2.1 percent rise in RBS, Standard Chartered, Barclays. HSBC and Lloyds after Yellen said the Fed wouldlikely need to raise rates at its next meeting.

Higher interest rates translate into higher margins forbanks, which have been under pressure from a "lower for longer"interest-rate environment.

"Hints at higher interest rates, a positive for lendingmargins, propelled bank shares higher. Lenders with a USpresence including Barclays and HSBC were top risers on the FTSE100," said Jasper Lawler, analyst at London Capital Group.

The mining index, up 0.5 percent, was alsoamong the top gainers. Shares in BHP Billiton, Rio Tinto and Anglo American advanced 0.3 to 2 percent.

Elsewhere, construction company Ashtead was up 2.5percent, while insurers Prudential and Legal & General increased more than 1 percent.

Tour operator TUI was the biggest loser on theindex, down 7.2 percent on profit taking after its results ledto a jump on Tuesday. The stock erased its gains of the previoussession.

Gambling firms Ladbrokes and William Hillwere under pressure, however, down 3.2 and 2.8 percent, afterHSBC cut its ratings on both stocks to "reduce" from "hold".

"A consumer downturn isn’t certain, but we analyse the bearcase given the risks and conclude that, while the online marketcould remain flat, retail revenues could decline ... andoperators could face EBITDA downgrades,” HSBC analysts said.

NEX Group, a brokerage which reported higherearnings on volatile markets after Donald Trump's election asU.S. president, was also down 4 percent. (Additional reporting by Atul Prakash and Kit Rees; Editing byJanet Lawrence and Hugh Lawson)