The CBI/PwC Financial Services Survey shows that activity in the financial services sector rebounded strongly, with a robust rise in business volumes and an increase in profits.
According to the latest CBI/PwC Financial Services Survey, 48% of firms said business volumes increased and 17% reported a fall, giving a balance of +32%.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The business volumes grew in all customer categories, like, industrial and commercial (+20%), financial institutions (+12%), private individuals (+16%), overseas customers (+8%).
In all, 39% expect business volumes to increase next quarter while 12% expect them to fall, giving a balance of +27%.
The income from fees, commission and income rose up to 18%. However, the income from net interest, investment or trading was rose by 3%.
The total costs increased by 13%, driven by a rise in staff costs by 12%.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataApproximately 34% of firms said profits increased and 15% reported a fall, giving a balance of +19% – not as strong rise as expected (+38%). Profits are expected to increase again next quarter (+14%).
Based on the correlation of the CBI’s survey data with the ONS, Financial Services sector employment is expected to have increased by 2,000 in the three months to March and is expected to increase again next quarter, by 2,000.
Business volumes rose at a strong pace, for a second quarter, in line with expectations, and the level of business was considered to be only slightly below normal.
Profitability rose for a fourth consecutive quarter, driven by rising volumes, growth in income, and only a modest appreciation in costs. Investment intentions strengthened across all categories.
Steve Davies, PwC Partner, Retail & Commercial Banking, said: "The banks’ return to confidence continues, although the improvement is less marked than in the previous quarter. Business is expected to improve across retail, commercial and financial segments and headcount has begun to grow again. This implies a general improvement in confidence which would benefit the banks, the broader financial services industry and the economy as a whole."
The investment management business rose since December 2010. Profitability increased for the fifth consecutive quarter, as growth in average commissions, fees and premiums accelerated and income values rose strongly.
