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
The 2014 Survey of Financial Institutions can be found in full
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).