UK banks NatWest, Lloyds and Barclays fell ahead of the release of quarterly results later this week and next as numbers from rival Santander UK were weaker than expected, with higher costs, credit impairment charges and provisions.
The UK arm of Spain's Banco Santander (LSE:BNC) still reported 11% growth in total operating income to £1.31bn and an 11% rise in profit before tax to £547mln.
It said higher income was partially offset by a 6% rise in costs, credit impairment charges up 17% to £61mln and provisions for other liabilities and charges up 83% to £86mln.
Chief executive Mike Regnier called it "a good set of results against a backdrop of turbulence in the global financial sector and ongoing challenges for the UK economy", with an ISA season that was the most competitive period for several years, with a "further slowdown" in the mortgage market.
The wider economic outlook for 2023 "remains uncertain", he said.
Analysts at UBS said the results were "on the weak side", with core revenue 1-2% below expectations, though they said impairments were low, which boosted profits.
For the FTSE 100-listed lenders, Standard Chartered PLC (LSE:STAN) kicks things off tomorrow, followed by Barclays PLC (LSE:BARC) on 27 April and NatWest Group PLC (LSE:NWG) on 28 April.
The following week, numbers are due from HSBC Holdings PLC (LSE:HSBA) on Tuesday 2 May and Lloyds Banking Group PLC (LSE:LLOY) wraps things up for the FTSE 100-listed lenders on 3 May.
Shares in Natwest led the sector fallers, down 1.97%, followed by StanChart at 1.96%, with Lloyds down 1.67%, Barclays 1.63% and HSBC 1.40%.
For Santander's overall results, a €224mln windfall tax paid to the Spanish government took out close to 10% of its net profits, which following this rose 1% to €2.57bn.