Shares in Santander (LON:BNC) bank dropped nearly 1.5 percent on Friday morning, after pre-tax profits remained flat in the first six months of the year.

UK pre-tax profits came in at £1 billion in the first six months of the year, with net profit for the entire group rising to €1.75 billion in the second quarter from €1.3 billion a year earlier. Net interest income came in at €8.61 billion.

However, the bank warned on “greater uncertainty” going forward and said risks would likely increase into 2018.

“The labour market remains strong, but higher inflation, largely from the lower value of sterling, is now reducing households’ real earnings.

“This is likely to result in lower consumer spending growth which, when combined with a potentially more challenging macro environment, adds a degree of caution to our outlook,” Santander said.

Net mortgage lending at its UK arm fell by £200 million after it being forced to increase rates. Like many other banks, the group also took a £69 million charge to cover claims for payment protection insurance (PPI) compensation in the first six months of the year.

Santander shares are currently trading down 0.16 percent at 515.38 (1109GMT).