Proposals from the UK's Independent Commission on Banking, designed to shield retail deposits form riskier activities, could wipe more than a quarter off bank's earnings per share in 2012, according to JP Morgan analysts, with Barclays potentially facing the biggest hit.

JP Morgan analysts, led by the highly-regarded Kian Abouhossein, put out a note this morning with the sub-heading of 'ICB ring fence credible, but shareholder returns at risk', in which the analysts sought to ascertain the impact of the commission's proposals.