Shares in Lloyds Banking Group PLC (LON:LLOY) were among the FTSE 100 Index’s top losers on Thursday after it warned on the outlook amid UK economic jitters.
The stock backtracked 1.74p, or 3.1%, to 54.01p as the bank said it may generate less capital than expected due to uncertainty created by the EU referendum result.
Lloyds said the impact on its business of Britain's vote to leave the world’s biggest trading bloc depended “on economic and political outcomes which remain uncertain”.
Chief executive António Horta-Osório said: "Given the uncertainty, it is too early to determine the impact on our formal longer-term guidance at this stage.
“However, while the business will remain highly capital-generative, it is possible this capital generation may be somewhat lower in future years than previously guided.”
Lloyds said first-half statutory profit before tax more than doubled to £2.5bn, although underlying profit fell 5% to £4.2bn and total income dropped 1% to £8.9bn.
The bank hiked its interim dividend 13% year-on-year to 0.85p per share and affirmed its guidance for 2016.
But it unveiled plans to close an extra 200 branches and cut a further 3,000 jobs by the end of 2017.
Horta-Osório said: "Following the EU referendum, the outlook for the UK economy is uncertain.
"While the precise impact depends upon a number of factors, including EU negotiations and political and economic events, a deceleration of growth seems likely."