Charlie Nunn

Profits were down to £1.5 billion, lower than the average forecast of £1.8bn as analysts expected a significantly small drop in profits of around 9.5%. However, the bank had to make greater than expected default provisions and set aside an additional £668m “in light of the deterioration in the macroeconomic outlook”.

Group chief executive, Charlie Nunn, said: “In February we announced an ambitious new strategy. While the operating environment has changed significantly since then, our customer focus remains unchanged.

“We continue to execute against our strategic goals, based on our objectives of transforming the business, while generating a stronger growth trajectory and enabling the group to deliver higher, more sustainable returns.

“Our income growth, balance sheet momentum and resilient customer franchise have enabled the group to deliver a robust financial performance and strong capital generation, alongside updated guidance for 2022.

“The current environment is concerning for many people and we are committed to maintaining support for our customers. The Group’s resilient business model and prudent approach to risk position the Group well to face the current macroeconomic uncertainties while generating enhanced returns for our shareholders.”