Financial services companies' profitability rose at its fastest rate for three years as business volumes increased for the third quarter in a row, revealed a financial services survey.
The report from the CBI and PricewaterhouseCoopers (PwC) said only life insurers and insurance brokers saw business volumes fall, with insurance brokers suffering their eighth successive quarterly fall. Insurance was the only sector to report a significant fall in confidence.
PwC also revealed that financial services firms increased staffing levels for the first time in a year.
It found that business volumes grew more slowly than in the second quarter, but PwC said recovery in the financial services sector had firmly taken root.
Of the companies surveyed, 39% said business volumes had increased over the last three months, while 12% said they were down.
More respondents in the latest survey said business levels were above normal, with optimism continuing to improve, said PwC. It said 38% of respondents said business levels were above normal, with only 17% disagreeing. This was the highest number of positive responses since June 2000, said PwC.
The survey also found that the average cost per transaction fell for the third quarter in a row, with overall profitability rising at its fastest rate since September 2000. PwC said it was expected to continue to rise over the next three months, although less rapidly.
