Banking deposits in Jersey fell during the second quarter of 2010, partly as a result of the challenging economic conditions that still prevail in the global markets and totalled £166.9 billion, a 6% decrease compared to the first quarter.
The statistics collated and prepared by the Jersey Financial Services Commission for the three month period ending June 30, 2010 also show that funds under administration decreased by 2.5% to £175.9 billion, though the number of unregulated funds has continued to rise compared to the first quarter. Company formations were also nearly 10% higher than the same period in 2009. The headline figures from the statistics are as follows:
· Banking deposits decreased by £10.7bn (6%) during the second quarter of 2010 from £177.6bn to £166.9bn.
· The Net Asset Value of funds under administration decreased by £4.6bn (2.5%) from £180.5bn to £175.9bn during the second quarter of 2010. The total number of funds decreased by 33 from 1,320 to 1,287. The total number of unregulated funds increased by 16 during the second quarter of 2010.
· The value of funds under investment management decreased by £0.9bn (4%) compared to the previous quarter from £21.1bn to £20.2bn.
· Company formations were up 9.9% compared to the second quarter of 2009. The total number of live companies on the register increased by 191 during the second quarter of 2010.
Geoff Cook, Chief Executive of Jersey Finance, believes that, with full economic recovery likely to take some time, Jersey was likely to experience further peaks and troughs in the financial statistics over the coming months. He commented:
‘The first quarter of 2010 showed the first signs of economic recovery, however, the second quarter, dominated by global austerity measures, saw a sharp fall in the performance of important financial markets indices. The FTSE100 was down by 13.43%, the FT World Index £ decreased by 12.03%, the MSCI World $ lost 13.26% and the S&P500$ index was down by 11.86%.
It is against this background of difficult economic conditions that we need to interpret the latest statistics. Interest rates remained at low levels this quarter and much of the fall in banking deposits can be attributed to currency fluctuations and inter group balance sheet management as opposed to underlying customer activity. The net asset value of funds under administration in Jersey fell by 2.5% and the funds under investment management were down by 4% but have nevertheless outperformed the major market indices.
Such challenging business conditions emphasise the vital need to vigorously promote and market Jersey around the world in order to ensure that we capture new business flows. In this respect, provided we can sustain our promotional efforts, we expect to see increasing business volumes from emerging markets, particularly from India, China and Russia which will provide further support to the business flows derived from more traditional markets.’
To view the full Quarterly Statistics Report June 2010 click here.