LONDON, Jan 12: State-rescued Royal Bank of Scotland said on Thursday it would cut about 3,500 more jobs over the next three years as the group shrinks its investment banking activities as part of a major overhaul.

The lender, which is 82 per cent state owned, also outlined plans to re-organise its wholesale banking operations into two divisions Markets and International Banking and downsize or cease other selected activities.

The company will exit businesses including cash equities, corporate broking, equity capital markets, and mergers and acquisitions.

It will also implement 'significant' reduc-tions in its balance sheet, funding requirements and costs.

'RBS has today announced changes to its wholesale banking operations to ensure they continue to deliver against the group's strategy,' a statement said.

'Our goal from these changes is to be more focused for customers, more conservatively funded, more efficient and with better, more stable returns for shareholders overall.

Further details will be provided in the bank's annual results that are due on February 23. The new plans will begin immediately but may take up to three years to implement.—AFP