Bailed-out Portuguese financial group Banco Espírito Santo is in talks over a possible sale of its investment banking arm, according to two officials at the bank.

Espírito Santo Investment Bank, which employs about 1,000 people predominantly in London and Lisbon, has had "expressions of interest" from a number of acquirers but talks are at an early stage. One official said the strongest interest had come from a strategic investor in the Middle East, with Chinese banks also in the frame.