According to the FT, next week RBS will announce plans for a dramatic restructure which will turn it into a much smaller UK retail and commercial bank. The move will see as many as 30,000 jobs axed from its 120,000 workforce over the coming years, the paper reports.

The bank, which is 81% owned by the government, is expected to announce its withdrawal from many of its riskier investment banking activities, alongside a plan to offload much of its international business.

The restructuring will form part of a series of cost-cutting measures and disposals led by new chief executive Ross McEwan.

A new-look RBS is likely to focus on three key groups: retail customers, small businesses and larger corporates, the FT reports, citing sources familiar with the plans.

The bank is expected to report a full-year loss for 2013 of around £8bn.