Following press reports over the weekend that the Royal Bank of Scotland is planning to split its investment banking division in two, Financial News can reveal that the markets business will be run by two co-heads who will report directly to Stephen Hester, the group chief executive.

Peter Nielsen, the chief executive of the current markets business, which sits within the markets and international banking division that is to be split up, will co-head the new unit together with Suneel Kamlani, the deputy chief executive of markets and international banking, according to sources familiar with the plans.