UK financial services post third quarter growth

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UK financial services grew for the third consecutive quarter in the last three months of 2021 and at their fastest pace since mid-2017, although Covid-19 dampened optimism, a survey of 105 showed companies in the sector.

A year after the end of the Brexit transition period, the health of Britain’s financial services is under scrutiny after the City of London was largely cut off from the European Union.

“As volume and profitability growth in the financial services industry remains strong, slowing optimism is something to watch closely, due to heightened uncertainty from Covid-19 clouding the economic outlook at short term, “said Rain Newton-Smith, chief economist at the CBI. .

The survey of 105 financial firms by employer group CBI and PwC consultants was completed just before new restrictions were introduced in Britain last month to tackle spiraling cases of the Omicron variant of the coronavirus .

In the first three months of 2022, companies expect activity to remain robust and at a healthy pace, according to the survey.

Profitability growth is expected to slow somewhat over the next few months, with the number of employees expected to grow solidly and talent retention being the top priority of the workforce, he said.

Beyond the first quarter, Britain said large companies must disclose climate-related financial data from April 2022 using a set of globally agreed guidelines.

The survey showed that 40% of companies were “somewhat prepared” for April, with 14% saying they were not ready and the remaining companies saying they were either somewhat or very prepared.

(Reuters)

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