The publication today of the Survey of Financial Institutions provided valuable statistical insight into performance, priorities and issues within Jersey’s finance industry.
Overall total annual net profits for the industry increased by more than three-quarters compared with 2010. It should be noted that this substantial increase was attributed to a small number of companies that reported large upwards movements in 2011.
Encouragingly, employment for the finance sector in 2011 (12,090) was at the same level as recorded in 2010.
Expenditure on goods and services by the finance industry was up by approximately 10% to £760 million, equating to £410 million being spent on-island by finance firms alone, which is an increase of £10 million since 2010 being injected into the local economy.
Also significantly, 87% of finance firms estimated that the confidence of their off-island parent companies in Jersey as a jurisdiction had been maintained.
Another area of note in the survey included analysis of geographical focus for business development over the next three years, with Asia more than doubling as a key region.
Going forward for 2012, over 54% of firms anticipated an increase in profitability, and approximately 51% of firms anticipated an increase in employment, with both figures showing a slight decrease compared to those made for 2011.
Geoff Cook, CEO of Jersey Finance commented
“2011 was still a turbulent time for our industry, due to the volatile nature of the global markets and economic uncertainty presented by the Eurozone crisis.
What these results reflect is that Jersey’s finance industry has maintained its workforce and also continues to increase investment in the local economy despite the pressures from global markets.
I am also pleased that this survey has further supported our efforts to develop new regions, an essential part of Jersey Finance’s long-term strategic activity. We have already witnessed signs of growth in 2012, with positive figures for funds, and company formations reported at the end of Quarter 1* and I believe that Jersey’s long-term perspective, stability and continued drive for innovation and promotion, make us extremely attractive to investors worldwide.
The work done by the Statistics Unit is an incredibly valuable tool for developing and assessing our strategy, and I would like to personally thank them for their efforts, as well as, all of the finance firms who completed the survey.”
*Quarterly statistics, collated and prepared by the Jersey Financial Services Commission.