Figures published today in the Survey of Financial Institutions indicate that profits generated by the finance industry jumped by a quarter last year to reach the highest level in six years whilst more local students than ever are finding employment in the industry, according to Jersey Finance.
Overall total annual net profits generated by the industry in 2014 stood at £1.47 billion, an increase of 25% compared with 2013, whilst the survey also highlighted the importance of the banking sector, which represented 81% of all profits for the industry last year, and itself recorded an increase in net profits of 28% on 2013.
In addition, profits generated by the trust and company administration sector grew by 14% compared to 2013 and the legal sector saw profits increase by 23%, whilst the fund management sector witnessed a 2% increase in annual profits. Net profits for the accountancy sector were calculated as £26 million.
The figures also highlight the value of the finance industry to the local economy, with local finance firms spending a total of £740 million last year, up 4% on 2013. Almost half of that (47%) was spent on local goods and services, significantly more than the 35% recorded in 2013, equating to an average of almost £960,000 every single day in 2014.
From an employment point of view, total expenditure on employment remained consistent with 2013 to stand at around £720 million, whilst particularly encouraging was that 390 local staff were recruited directly from school or university by the finance industry in 2014, 80 more than 2013 and the highest number recorded since the Survey began in the 1990s.
Geoff Cook, CEO of Jersey Finance commented:
"The results of this Survey are particularly positive this year, reflecting optimism across the board, indicating growth in sub-sectors and reinforcing what we have been hearing anecdotally from our members firms in recent months. Of course, the banking industry globally is still undergoing significant changes following the financial downturn and Jersey is not immune to that. It is therefore encouraging that the banking sector, which is central to Jersey's finance industry, performed so well last year, an indication that local banking institutions have invested wisely and prepared appropriately to remain strong and competitive in a new look banking landscape.
"With finance firms spending almost £1 million every day locally, each employee in the industry generating a record average net profit of £124,000, and more local students finding employment in the industry than ever, the results also show clearly just how valuable the industry is to the local economy."
The 2014 Survey of Financial Institutions can be found in full at www.gov.je.
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