RBS, which say it may need to shed more jobs worldwide, is holding its AGM at the Edinburgh International Conference Centre, where Directors are expecting to face shareholders’ anger over pay and pensions policy. The banks’ chairman, Sir Philip Hampton, says he expects shareholders will question the £703,000 annual pension given to former chief executive Sir Fred Goodwin.

RBS has already announced that about 2,700 posts will go but "this will not be the end of the story", according Sir Philip, who called for an "end to the public flogging" of the bank over its past mistakes.

Sir Philip will tell shareholders that more redundancies are expected, although it is too early to say how many jobs will go or where the cuts will be made. Sir Philip will reiterate to shareholders that legal advice is being taken to see whether the decision on Sir Fred's pension can be reversed.

Michael Lamoureux, who founded the RBS shareholder action group, told the BBC the bank had perpetrated "the biggest crime in financial history in the UK" when it asked shareholders for an extra £12bn to shore up its finances last year. He said shareholders had been "grossly misled in the prospectus" and were being contacted about taking a class action against RBS.