Banking duo’s performance in City spotlight

The contrasting fortunes of taxpayer-backed lenders Lloyds Banking Group and RBS will return to the fore this week.

Lloyds will post its latest quarterly returns on Thursday as it edges ever closer to being fully returned to private hands.

The lender enjoyed a robust 2016, posting its highest annual profits for a decade, and analysts at UBS expect Lloyds solid performance to continue.

Rival RBS will follow with its results on Friday, in the wake of Chancellor Philip Hammond’s stark admission the Government is prepared to sell its stake at a loss to the public purse.

Cost-cutting is expected to remain a key theme at RBS and progress on the seemingly never-ending restructuring to slim down its balance sheet.

Its first-quarter figures may provide some respite to embattled boss Ross McEwan, with most analysts expecting underlying profits to more than double to £942 million.