Credit market and trading asset writedowns dragged Royal Bank of Scotland’s global banking and markets unit to a £11bn (€12.3bn) operating loss last year, prompting the bank into a drastic revamp that will involve abandoning leveraged and project finance lending and ceasing proprietary and correlation trading.

RBS outlined details today of its keenly anticipated plan to reshape its investment banking unit, called global banking and markets, in the face of huge losses that have forced the bank into a government bailout, as it published its full-year results.