Net exports of the UK financial sector rose by 28% to a record £50.5bn in 2008, according to the annual UK Financial Sector Net Exports report by International Financial Services London (IFSL), the independent organisation promoting UK financial services worldwide. The banking, insurance, fund management and ship broking industries all contributed to growth in UK export earnings, with banks’ earnings of £31.1bn providing the core of net exports, or 62% of the total.
Net exports of banks increased by 31% in 2008, with 85% generated by exports of Financial Intermediation Services Indirectly Measured (FISIM) and spread earnings. FISIM exports, a measure of net margin income, rose 82% to £15.4bn while spread earnings from derivatives, securities and foreign exchange trading were also up by 17% from £9.5bn to £11.1bn. Elsewhere, the contribution of insurance to net exports rose by a half to £8.0bn, while shipbrokers’ contribution rose to £948m. The fund managers’ contribution to financial sector net exports increased slightly to £4.2bn, while securities dealers’ contribution dropped from £4.8bn to £3.9bn.
Having been in the £10bn to £11bn range in each of the first three quarters of 2008, the quarterly financial services trade surplus jumped to £13.1bn in the fourth quarter due to a rise in banks’ net margin income and spread earnings. The surplus reverted to £10.3bn in the first quarter of 2009.
Duncan McKenzie, IFSL’s Director of Economics, said: “A steady improvement in the quarterly trade surplus during 2009 to £12bn in the fourth quarter would mean UK financial sector net exports are likely to remain at the level of £50bn registered in 2008.”
Stephen Wright, IFSL’s Chief Executive, noted: “The strong net export performance of the UK financial sector of £50bn in 2008 offset over a half of the £93bn trade deficit in goods: demonstrating the substantial contribution of the financial sector to the UK balance of payments, notwithstanding the global economic slowdown.”
In addition to the financial sector’s contribution, the trade surplus generated by professional services - legal and accounting services and management consultancy – rose to £6.8bn in 2008 from £6.1bn in 2007.
Click here to view PDF of UK Financial Sector Net Exports 2009 report
Net exports of banks increased by 31% in 2008, with 85% generated by exports of Financial Intermediation Services Indirectly Measured (FISIM) and spread earnings. FISIM exports, a measure of net margin income, rose 82% to £15.4bn while spread earnings from derivatives, securities and foreign exchange trading were also up by 17% from £9.5bn to £11.1bn. Elsewhere, the contribution of insurance to net exports rose by a half to £8.0bn, while shipbrokers’ contribution rose to £948m. The fund managers’ contribution to financial sector net exports increased slightly to £4.2bn, while securities dealers’ contribution dropped from £4.8bn to £3.9bn.
Having been in the £10bn to £11bn range in each of the first three quarters of 2008, the quarterly financial services trade surplus jumped to £13.1bn in the fourth quarter due to a rise in banks’ net margin income and spread earnings. The surplus reverted to £10.3bn in the first quarter of 2009.
Duncan McKenzie, IFSL’s Director of Economics, said: “A steady improvement in the quarterly trade surplus during 2009 to £12bn in the fourth quarter would mean UK financial sector net exports are likely to remain at the level of £50bn registered in 2008.”
Stephen Wright, IFSL’s Chief Executive, noted: “The strong net export performance of the UK financial sector of £50bn in 2008 offset over a half of the £93bn trade deficit in goods: demonstrating the substantial contribution of the financial sector to the UK balance of payments, notwithstanding the global economic slowdown.”
In addition to the financial sector’s contribution, the trade surplus generated by professional services - legal and accounting services and management consultancy – rose to £6.8bn in 2008 from £6.1bn in 2007.
Click here to view PDF of UK Financial Sector Net Exports 2009 report
No comments:
Post a Comment