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The sentiment was underlined on Friday when HSBC Holdings Plc’s Chief Financial Officer Ewen Stevenson warned that the uncertainty is plaguing consumer and business confidence.
“We continue to be cautious on the U.K., probably more than anywhere else given the array of Brexit outcomes that could drive some pretty different economic outcomes,” Stevenson said in a phone interview.
Royal Bank of Scotland Group Plc
The U.K. government-backed lender issued its strongest warning yet on the impact of Brexit, when it said April 26 that Britain’s slowing economy is likely to eat into income over the coming months. Shares in RBS, which is historically the country’s largest lender to small- and medium-sized businesses, tumbled on the news and analysts cautioned that the bank might miss its profit targets.
Barclays Plc
Jes Staley, the bank’s chief executive, emphasized that Brexit is a big drag on Barclays’s stock price and told analysts last month that the lender is positioning itself conservatively to withstand the uncertain U.K. outlook. The bank reduced its loan-to-deposit ratio and has increased its stock of high-quality liquid assets to prepare for any volatility in markets. The bank’s retail division missed analyst estimates in the first quarter.
Lloyds Banking Group Plc
Lloyds, the largest U.K. mortgage lender, is striking a more upbeat tone and is one of the few banks to not make a provision for a Brexit-related downturn in its business. Still, Chief Executive Officer Antonio Horta-Osorio said that continued uncertainty over the U.K.’s withdrawal could further affect the economy.
Banco Santander SA
Banco Santander SA’s U.K. subsidiary, one of the largest personal finance lenders in the country, said Brexit is dragging down profits. Santander UK Plc’s profits before tax were down 35 percent in the first quarter from a year earlier and the bank warned of a slight deterioration in U.K. economic growth this year. [...]