Survey reveals financial services sector grew in Q1

| April 4, 2011 | 0 Comments

A quarterly survey of the UK’s financial services sector by PricewaterhouseCoopers (PwC) and the Confederation of British Industry (CBI) has revealed that business volumes grew in the three months to the end of March.

The financial services sector, which represents around 8% of GDP, has been badly affected by the credit crunch and debt crises in Ireland and other European nations.

According to the survey, which was conducted between February 24 and March 10, profitability is growing in the UK banking sector due to fewer losses on loans.

Companies were asked how their business volumes fared in the three months to March and 33% said that volumes grew, while 11% said they fell.

The resulting balance of + 22% exceeded firms’ expectations (+15%), and was only slightly below the balances of +27% and +28% recorded in the previous two quarters.

Commenting on the findings, CBI chief economic adviser Ian McCafferty, said: “A third quarter of strong volume growth shows the financial services recovery is building strength.”

“While business with private individuals has again shown the fastest growth, business with companies also shows some signs of improvement. Firms’ profitability has improved due to higher incomes and another big drop in the value of non-performing loans,” he added.

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