The Royal Bank of Scotland is to reduce the size of its investment bank by as much as £30bn and cut hundreds more jobs as the taxpayer-backed lender attempts to head off growing government pressure to close down the controversial division.
The lender will announce that it will reduce the size of the investment bank's balance sheet, as well as scaling back the amount of capital allocated to the business and continuing its redundancy programme, according to the Daily Telegraph.
On Thursday, RBS will announce its full-year results for 2012, which will show Britain's biggest state-backed lender remained loss-making last year.
According to analysts at Investec, RBS is expected to announce it made a pre-tax loss of as much as £4bn.
RBS directors, including Sir Philip Hampton, the bank's chairman, are understood to have pushed for the cuts in the investment bank despite warnings from senior executives that pressing for even more radical restructuring could undermine the business.
Asset sales will see RBS reducing the size of the investment bank's balance sheet by between £20bn to £30bn, or as much as 10pc of the unit's total assets.
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