8,000 UK Financial Services Jobs Likely To Go In Q4

The pace of growth in the UK financial services sector continued to slow in the three months to September, according to the latest CBI / PwC Financial Services Survey.

According to The Financial Times  up to 8,000 jobs are thought likely to go in the fourth-quarter as a result.

Here are some comments about the latest survey findings:

Ian McCafferty, Chief Economic Adviser, CBI, said:

'The recovery in the financial services sector is continuing but the pace of growth has slowed compared with earlier in the year.

'After a torrid couple of months on global financial markets, the mood has clearly darkened. Uncertainty about future demand, worries about the global recovery and shifting regulatory sands are weighing on sentiment.

'With business volumes predicted to slow further and little growth in income expected, firms are planning to reduce their headcount in the next quarter'.

Andrew Gray, UK banking leader at PwC, said:

'Concerns over new regulation continue to overshadow banks’ confidence. This is despite a solid last quarter, which has seen bank margins and overall profitability hold up, revenues growing, albeit slowly, and levels of activity with retail and commercial customers improve. The UK Independent Commission on Banking’s final proposals are forcing banks to reassess their business models, funding requirements and operations. Despite a short-term increase in operating costs, as banks continue to invest in IT efficiencies and marketing to protect their market share, this is unlikely to last. Many banks continue to control costs aggressively and as a result expect further headcount reductions'.

Pars Purewal, UK asset management leader at PwC, said:

'The volatility and steep falls of equity markets over the summer has led to growing concerns for investment managers over levels of demand and the intensity of competition. It is encouraging that revenue growth and profitability have stabilised and the sector is remaining notably calmer than in previous market corrections. Investment managers show a greater readiness to respond to weaker top-line performance with tighter control of operating costs, which is expected to include the first reduction in headcount in over two years'.

'The continued uncertainty of sovereign debt markets and the risk of greater market turmoil are leading many securities traders to report downbeat predictions for volumes and revenues. Many in the industry expect that the full effects of the European sovereign debt crisis are yet to materialise and this is leading to a cautious outlook, with job losses looking likely. Operating costs are set to increase, with regulatory compliance a key priority as the sector gears up for the Market in Financial Instruments Directive (MiFID) review and European Market Infrastructure Regulation (EMIR)'.

Pace of Growth In Financial  Services Sector Activity Slows – CBI / PWC

image: © Ian Sane

Have something to tell us about this article?

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...