A report by Lloyds Bank has revealed that UK financial institutions (FIs) are showing resilience despite the turbulence caused by the Covid-19 crisis.
The report gathered responses from asset and wealth management firms, major banks, insurers and intermediaries.
Sixty-two percent of the senior leaders within FIs said that they expect to maintain or boost their revenues over the next 12 months. However, this is down from last year’s comparable figure of 80%.
Moreover, 90% said that their firm’s preparations for Brexit are on track while 64% intend to maintain existing staffing levels or create jobs.
Despite the optimism, 68% of the respondents expect UK economic growth to slow in the year ahead while 62% have similar views about the UK financial services sector.
The comparable figures in 2019 are 58% and 55%, respectively.
Moreover, according to the study, FIs are now seeing the Covis-19 pandemic as the topmost risk to financial institutions.
Sixty-two percent of the business leaders have cited the pandemic as the biggest risk, ahead of economic uncertainty, new regulation and Brexit, which was the top concern last year.
The study also revealed that 89% of the FIs plan to retain flexible working methods while 81% plan to utilise digital platforms to interact with clients.
Lloyds Bank Commercial Banking head of financial services Adrian Walkling said: “For all the challenges we have faced through the pandemic, one of the most positive steps taken by financial institutions has been the rapid roll out of technology for staff across the sector and the commitment to experiment with new ways of working.”
Recently, Lloyds decided to cut 865 jobs in order to slash costs amid rising cost pressures.
Most of the job cuts will take place in the insurance and wealth divisions.