Guernsey Banking Sector Shows Strength

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GuernseyFinance

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Guernsey Finance is a joint industry and government initiative which seeks to promote and connect the island’s financial services sector in its chosen markets internationally. Based in Guernsey, the agency conducts marketing, communications and business development for members firms and also employs representatives in London, Hong Kong and Shanghai.
Developments over recent weeks show the continued strength of Guernsey’s banking sector, according to Peter Niven, Chief Executive of Guernsey Finance.
Guernsey Wealth Management

Developments over recent weeks show the continued strength of Guernsey's banking sector, according to Peter Niven, Chief Executive of Guernsey Finance.

In November last year Guernsey introduced a Depositor Compensation Scheme (DCS) covering all retail depositors up to £50,000 per person per licensed bank.

Figures from the Guernsey Financial Services Commission (GFSC) show that the value of bank deposits held by banks in Guernsey grew 15% in the final quarter of last year, not only from currency movements but also through volume growth to reach £157bn at the end of 2008.

Recent weeks have seen several more significant developments:

  • The launch in Guernsey of Clydesdale Bank International, a branch of Clydesdale Bank which is owned by the National Australia Bank Group
  • Butterfield Guernsey has reported that its profits in 2008 were 18% higher than in the previous year
  • Schroders Private Banking, which has operations in Guernsey, Jersey and London, won the categories for High Net Worth (HNW) Image and Reputation and Ultra High Net Worth (UHNW) Overall Client Service Quality at the Private Asset Management (PAM) Awards 2009
  • Yorkshire Guernsey has reported increased annual profits of 14% for 2008
  • An announcement has been made that it is anticipated Skipton Guernsey Limited and Scarborough Channel Islands Limited will integrate later in 2009 following the merger of Skipton Building Society and Scarborough Building Society.

Peter Niven, Chief Executive of Guernsey Finance – the promotional agency for the Island's finance industry, said: "These developments – a combination of a new launch, profits growth, awards success and consolidation – together paint a picture of a sector that is, on the whole, well placed to remain robust in the face of challenging global economic conditions and is in a strong position to continue bringing in new business flows during 2009."

Clydesdale has established a dedicated operation in Guernsey at new offices and with a seven-strong team of staff.

"Although Clydesdale already had a presence in the Island, the opening of a standalone business signifies our commitment to, and confidence in, Guernsey," said James Blower, Managing Director.

Mr Niven added: "Clydesdale Bank establishing this operation in Guernsey is very good news for the Island. It is extremely positive that Guernsey is continuing to attract investment from operations associated with such quality names like the National Australian Bank Group. This reemphasises the confidence in the Island as a leading international banking centre, one which can boast inclusion on the recent OECD 'white list' of transparent and co-operative jurisdictions."

For more information about Guernsey's finance industry please visit www.guernseyfinance.com.

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