Royal Bank of Scotland's Global Banking and Markets division was the second worst-hit investment banking business among peers in the US and Europe in the second quarter, as clients shied away from deals and uncertain market sentiment hit trading and underwriting fees.

The bank, which reported second quarter earnings today, said its global banking and markets division saw operating profits slide by 60% over the second three months of the year, from £1.1bn to £446m by the end of June.