WE have just emerged from a year in which, thanks to Brexit, politics collided with business in a perhaps unprecedented scale. But at Royal Bank of Scotland the political worry is not confined to Brexit.

As speculation persists that the Brexit impasse could lead to a General Election, analysts say the prospect of victory for socialist Jeremy Corbyn in the event the UK goes to the polls will be a further concern for top brass at state-backed Royal. Indeed, it could well be that the prospect of a Corbyn-led Labour Government is already deterring investors from buying shares in the Edinburgh-based institution.

Labour has previously said it would launch a consultation into breaking up the bank into smaller local players if it comes to power, while there has also been a suggestion that a Labour Government could go the whole hog and fully nationalise the institution.

Royal Bank remains 62.4 per cent owned by UK taxpayers - a legacy of its £45.5 billion bailout during the financial crisis of 2008 and 2009 - and current Chancellor Philip Hammond remains committed to selling off the Government’s shares. He re-started the process of selling off the public’s stake in June, when a tranche of shares equating to around 7.7% of the bank were sold to institutional investors - at a loss to the taxpayer.

Michael Hewson at CMC Markets, said: “[Shadow Chancellor] John McDonnell has made no bones about the fact he would like to change RBS’s mandate.

“That is a risk if there is an election and Labour manage to get hold of the reins of that. I certainly think of the two banks, Lloyds is probably the better bet than RBS, which has the tail risk of being taken over completely, or coming under the influence of political pressure in terms of its lending practices.”

Mr Hewson’s comments were echoed by Laith Khalaf at Hargreaves Lansdown, who said the uncertainty over what a Labour Government would do with RBS is an “additional worry” for the bank.

It looks like being an another eventful year for the one-time banking titan.