HSBC beat expectations with an underlying first-quarter profit of $6.8bn (€5.18bn) as Europe’s biggest bank saw a rebound in investment banking, growth in Asia and a fall in US bad debts.

UK taxpayer-backed Royal Bank of Scotland today announced around 3,500 job losses over the next three years in a bid to downsize its investment banking arm.

British Chancellor George Osborne has revealed plans to further scale down the investment banking arm at RBS and shift the taxpayer-backed bank’s focus to the UK.

Royal Bank of Scotland reported a return to profit in the third quarter as it slashed its bad debts and offset a plunge in income at its under-pressure investment arm.

THE British Government looks set to increase its stake in the Royal Bank of Scotland group (RBS) — stopping just short of nationalising the business — which is set to report the biggest ever annual loss for a publicly-quoted British company next month.