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Jersey Finance Industry Profitable, Growing

by Jason Gorringe, Lowtax.net, London
07 July, 2014

Jersey Finance has reported that the financial services industry posted profits of GBP1.18bn (USD2.02bn) in 2013, a level consistent with the past two years and the fourth best performance in the last 15 years.

79 percent of all profits were recorded in the banking industry. Profits generated by the fund management sector grew by 38 percent compared to 2012 and the trust and company administration sector saw profits increase by 3 percent.

The survey also found that the number of staff employed in compliance roles increased by 35 percent in 2013, highlighting the importance firms are attaching to meeting the requirements of a rising tide of regulation. Despite this, the net profit per employee increased slightly on the previous year.

Geoff Cook, CEO of Jersey Finance, said: "These results paint a picture of stability and incremental growth in sectors of the industry, particularly within fund management, and re-affirm the trends we have been seeing over the past few months, with our member firms indicating that new business activity overall is picking up. Considering the banking industry globally is still in recovery following the financial downturn, it is encouraging that banking activity and profits in Jersey have stabilized and, with interest rates set to move upwards in the not-too-distant future, a further restoration of bank profitability can be expected."

"Meanwhile, it is also encouraging that Jersey's finance industry has maintained its workforce and at the same time continued to invest in the local economy. Local student recruitment is at its highest level in six years, tying in with the latest very positive Business Tendency Survey results which indicated optimism in the finance industry about future business prospects, whilst the industry continues to spend approaching GBP1m per day in the local economy, despite the relentless drive to cut costs in the face of tough competition."

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