Oct. 6 (Bloomberg) — U.K. financial-services firms are
expected to add 28,000 jobs this year as the banking industry
increases profitability and confidence, according to the
Confederation of British Industry.
Britain’s banks, insurers and other financial companies
will employ about 1.15 million people by the end of 2014 from
1.12 million in the year-earlier period, Britain’s largest lobby
group and accounting firm PricewaterhouseCoopers LLP estimated
in a survey today. Banking profitability was “up markedly” in
the third quarter and this will continue, it said.
“The U.K.’s financial-services sector is enjoying its
strongest run of growth since 2007, with activity rising across
all customer categories and profitability bouncing back,” Rain
Newton-Smith, CBI director of economics, said in the statement.
“Financial-services firms are relatively upbeat about future
prospects, despite some big geo-political risks that remain on
U.K. banks are benefiting from an economic recovery in
Britain with statistics released last month showing the economy
expanded faster than estimated in the second quarter. Royal Bank
of Scotland Group Plc, Britain’s largest state-owned lender,
said on Sept. 30 it reclaimed funds it had previously set aside
for souring loans as the U.K. and Irish economies recovered,
sending the shares to their highest in almost a year.
The CBI survey comes as separate study by recruitment firm
Astbury Marsden said job vacancies in London’s financial center
jumped by more than a third in September to 3,470 from a month
earlier, driven by hiring in regulatory and compliance
The CBI said it surveyed firms from Aug. 18 to Sept. 4.