UK Financial Services Sector Rising in Volumes and Profit
According to the PwC/CBI Financial Services Survey, an increase at a very slow rate than expected has been seen in the UK financial services sector.
On asking about their business volumes, the answer retrieved form 37 percent was that their volume raised while 9 percent of them said that their volume decreased in a three month period. The balance achieved of +28 percent was a good response as per June 2007 which was 57 percent but not up to the expected 63 percent required target.
Similarly, next quarter growth of balance of +24 percent from firms is also expected.
Except from general insurance business, all other financial sector achieved an increase in their businesses. Volumes of banks also saw an increase at a very slow pace but after a decline of two quarters, while the society’s project business gained a fast rise in their volumes since March 2008.
Overseas customers business showed the strongest growth with highest balance from firms since 1999 September showing it as above normal.
“Since the last three months, growth activity pace rise has been seen in the sector of financial services after the credit decline. Even though this growth was slower than expected but it helped firms’ business volume to rise with good profit. There is a current worry that the progress in the businesses volume may hold back in the next coming year and firms of financial services are more concerned about the weak demand will reduce the growth.
Employment rate in the financial sector since December 2007 rose for the first time at a balance rate of +12 percent which was approximate to the expected +14 percent. Still this balance is expected to fall down again in the next quarter of this year to a level of -20 percent.
All of the sectors except investment management have no positive expectations of gaining normal balance in the coming next six months.