Britain’s financial services firms are at their most upbeat for nearly 17 years, according to a new Confederation of British Industry (CBI)/PwC survey.
The quarterly survey found 59% of firms said they felt more optimistic, compared to 6% who were less optimistic. The balance, of 53%, is the highest since December 1996.
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The survey, covering the three months to early September, also showed a net 24% of financial firms increased staff in the period, the biggest rise for six years.
"With optimism rising and jobs profitability growing, this is an encouraging quarter for the financial services sector," said Stephen Gifford, the CBI’s director of economics.
"Firms are expecting positive momentum to carry into the next three months, alongside a strong recovery in business volumes, which will boost profits further," he added.
The CBI/PwC survey is based on the balance of firms reporting an increase and those reporting a decrease.
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By GlobalDataThe study estimates that 10,000 jobs were added in the period studied, with another 2,000 expected to be created in the current quarter, taking total employment in the sector to 1.14 million.
The one negative point came from business volumes, which the survey indicated had fallen in the latest quarter. Some 22% of firms reported a rise in business volumes, but 32% said they had fallen.
"Banks’ optimism is increasingly buoyant despite seeing a slight seasonal blip in commercial and industrial volumes. Activity and profitability are expected to grow as the economy recovers, and investment in new products and infrastructure is increasing," said Kevin Burrowes, PwC’s UK financial services leader.
Over half of firms said that costs had already gone up since they have had to deal with the new regulators of the Prudential Regulatory Authority and the Financial Conduct Authority.
