European banks have pushed back profitability targets so many times, the dates are now more placeholders than deadlines.
Bloomberg News reports that eight years after the financial crisis hit its peak, several of the region’s lenders said they’ll probably need more time to reach the return on equity goals they set for the next few years.
Royal Bank of Scotland on Friday became the latest to do so, blaming the impact of lower-for-longer interest rates and depressed customer activity after the U.K.’s vote to leave the European Union. The state-owned firm joined HSBC, Standard Chartered and UBS, who all also watered down their return guidance when presenting second-quarter results.
“There are a multitude of reasons they’re cutting their forecasts, but there has definitely been a general squeeze,” said Alan Beaney, a director at RC Brown Investment Management, which owns U.K. and European bank shares including RBS and HSBC. “Brexit is another excuse to step back from targets.”
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