The UK’s financial sector is looking very healthy at the moment with increased growth, profits and recruitment.
According to the latest CBI/PwC survey, there are good reasons to be confident about the future of the country’s financial sector. During the period of the three months to September, it saw its fastest levels of growth since 2007.
This is expected to continue into the next quarter with the increasing volumes also bringing larger profits for financial firms. This is compared to a contraction in the previous quarter.
The rise in profits occurred despite an increase in costs in the sector and that too is expected to continue into the next quarter.
There are some concerns about the future though. Costs are expected to increase, while there are worries about the negative effect of statutory legislation and regulation.
The CBI Director for Economics, Rain Newton-Smith said: “The UK’s financial services sector is enjoying its strongest run of growth since 2007, with activity rising across all categories of customer and profitability bouncing back.
“The spike in costs was off-set by a steep fall in the value of non-performing loans, suggesting that much of the fall-out from the financial crisis is now working its way out of the system.
“With competition one of the top concerns for the coming year, the sector could be moving to a new phase in the recovery where firms are feeling more assured about the level of demand, and are now shifting their gaze to competing for new customers and business. This is reflected in their expectation that sales to new customers will be the main driver of growth in the coming quarter.”
Image by Joan Campderrós-i-Canas