BARCLAYS has seen profits fall and warned the Brexit vote could impact its future.
The lender says pre-tax profits dropped 21 per cent to £2.06bn in the first half of the year.
It said the increased risk of recession, with lower growth, higher unemployment and falling UK house prices, would likely hit many of its operations, most notably mortgages.
Bosses also warned that if Brexit negotiations end with the UK's financial sector losing “passporting” rights, it would be required to make alternative licensing arrangements in EU jurisdictions where it operates.
A spokesman said: “The result of the referendum means the long-term nature of the UK's relationship with the EU is unclear and there is uncertainty as to the nature and timing of any agreement with the EU.
“There is a risk of uncertainty for both the UK and the EU, which could adversely affect the economy of the UK and the other economies in which we operate.”
Barclays also booked a £400m charge for payment protection insurance in the second quarter, taking its total provisions to £7.8bn.
Total income was down nine per cent to £11bn in the six months to June, while net profit for the second quarter came in lower at £803m.
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