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Profit grows in financial services
31 March 2014
UK business volumes continue to improve, according to the new PwC/CBI survey
Business volumes have improved for a second consecutive
quarter, underpinning vigorous growth in profitability,
according to the latest CBI/PwC financial services survey which
is conducted on a quarterly basis and covers ten sectors of UK
Volume growth is expected to strengthen further next quarter
and profitability is predicted to remain solid. Employment has
now been growing steadily for the past two years and is
expected to rise further in the coming three months.
Investment intentions for the year ahead are robust across all
categories, increasingly driven by a desire to boost
efficiency/speed, expand capacity and reach new customers.
Paula Smith, PwC’s UK asset management leader
said, "Investment managers have had an impressive three months.
Optimism has risen yet again - for the ninth quarter - although
for the first time the pace has slowed. And there is reason for
this sentiment; business volumes have expanded again, driven by
demand from private individuals and financial institutions and
incomes from fees, commission and premiums are growing at a
remarkable rate. Profitability has rapidly picked up pace, as
However, she added that investment managers need to remain
aware of possible constraints to their business that might
curtail this strong growth. "Demand, regulation and competition
will all play a part and need to be given the correct amount of
focus. It is good to see that investment managers are reacting
to this through investment intentions in order to increase
efficiency and to reach new customers."