Originally posted by GB9
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Earnings per share were down to 3.9p from 4.6p but the board declared an interim dividend of 0.85p per share, up 13%.
Profits were hit by total revenues falling 1% to £8.87bn and higher loan impairments which proved more than enough to outweigh a 3% reduction in operating costs from chief executive António Horta-Osório's simplification programme.
Having already slashed £0.6bn of the £1bn of targeted annual costs in response to the lower interest rate environment, the Spaniard unveiled the new round of cuts that would help trammel costs towards a new target of £1.6bn.
Given the uncertainty following the Brexit vote there was no change to formal longer term guidance at this stage, the board conceded it "is possible that this capital generation may be somewhat lower in future years than previously guided"
Profits were hit by total revenues falling 1% to £8.87bn and higher loan impairments which proved more than enough to outweigh a 3% reduction in operating costs from chief executive António Horta-Osório's simplification programme.
Having already slashed £0.6bn of the £1bn of targeted annual costs in response to the lower interest rate environment, the Spaniard unveiled the new round of cuts that would help trammel costs towards a new target of £1.6bn.
Given the uncertainty following the Brexit vote there was no change to formal longer term guidance at this stage, the board conceded it "is possible that this capital generation may be somewhat lower in future years than previously guided"
Given the uncertainty following the Brexit vote there was no change to formal longer term guidance at this stage, the board conceded it "is possible that this capital generation may be somewhat lower in future years than previously guided"
Horta-Osório said the impact of Brexit would be dependent on economic and political outcomes which still remain uncertain, but he reduced expectations for capital generation by around 160 basis points of CET1 capital in 2016 from 2% to 1.6%, pre-dividend, due in particular the effect of currency rates on risk weighted assets.
He added: "Following the EU referendum the outlook for the UK economy is uncertain and, while the precise impact is dependent upon a number of factors including EU negotiations and political and economic events, a deceleration of growth seems likely.
Horta-Osório said the impact of Brexit would be dependent on economic and political outcomes which still remain uncertain, but he reduced expectations for capital generation by around 160 basis points of CET1 capital in 2016 from 2% to 1.6%, pre-dividend, due in particular the effect of currency rates on risk weighted assets.
He added: "Following the EU referendum the outlook for the UK economy is uncertain and, while the precise impact is dependent upon a number of factors including EU negotiations and political and economic events, a deceleration of growth seems likely.
. I look forward very much to Britain becoming free, independent, democratic and prosperous. I truly hope it happens one day.
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