Royal Bank of Scotland (RBS) is preparing to cut more than €1.17bn (£1bn) of annual operating costs by eliminating jobs and closing branches as it seeks to bolster profitability, said a person with knowledge of the plans.

Even though Bank of Ireland will probably not need new capital as a result of the Balance Sheet Assessment or the EU-wide stress tests next year, it should raise €300m to shore up its capital position, according to Deutsche Bank.

Ireland’s banks may need further recapitalisation of between €2bn and €4bn, which could result in the need for a second bailout.

THE father of desperately ill baby Charlotte Wyatt made an impassioned plea to a High Court judge yesterday not to give up the battle to save her.