24 February 2017
Visit dh.com

UK finance sector IT spending on the up as industry optimism improves

02 April 2012  |  5823 views  |  0 London skyline - old Natwest tower and gherkin

UK financial services firms increased IT spending in the first quarter of 2012, a trend they plan to continue over the next year, buoyed by signs of spring-time economic green shoots, according to a CBI/PwC survey.

In their latest quarterly poll of 95 finance firms, the pair found the first rise in optimism in a year, with 32% more respondents feeling upbeat than those identifying as pessimistic.

Of the 95, 44% saw volumes rise in the quarter to March compared to just 21% reporting a fall, giving a balance of +23%. Growth in income more than offset the impact of the sharp increase in total costs, allowing profitability to rise more rapidly than in the previous three quarters (+21%).

With the industry mood slowly but surely improving after a torrid few years and the setback of the euro crisis, spending is on the rise, including on staff, with the number of new employees surprisingly up.

Spending on technology is also growing, with a plus balance of 47% of respondents increasing investment over the last three months, although this is as much down to regulatory needs as industry optimism, especially at banks and building societies.

Ian McCafferty, chief economic adviser, CBI, says: "Financial services sales volumes and income continued to rise this quarter, putting the sector's recovery on a firmer footing...The unexpected rise in employment is a further encouraging sign for the sector. But with the current level of business regarded as below normal, conditions still remain challenging for financial firms."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Isitc members to boost IT spending

Isitc members to boost IT spending

12 March 2012  |  5027 views  |  0 comments
Europe drags down bank IT spending - Celent

Europe drags down bank IT spending - Celent

23 January 2012  |  5954 views  |  1 comments
Global retail banking IT spending on the rise - Ovum

Global retail banking IT spending on the rise - Ovum

13 January 2012  |  8164 views  |  0 comments
Financial jobs market records fastest growth since the banking crisis

Financial jobs market records fastest growth since the banking crisis

04 July 2011  |  5359 views  |  0 comments
Financial services IT spending on the up - Bloomberg survey

Financial services IT spending on the up - Bloomberg survey

23 May 2011  |  7581 views  |  0 comments
UK finance sector IT spending to grow as industry recovers - CBI

UK finance sector IT spending to grow as industry recovers - CBI

04 April 2011  |  7031 views  |  0 comments
UK finance sector IT spending to remain flat - survey

UK finance sector IT spending to remain flat - survey

28 June 2010  |  7388 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit dh.com visit BNP paribas

Who is commenting?

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
11901 views comments | 51 tweets | 71 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
8226 views comments | 40 tweets | 33 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
6410 views comments | 17 tweets | 13 linkedin
hands typing furiouslyDecoding the Policy Impact of India's Unio...
6275 views 0 | 13 tweets | 2 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
6121 views comments | 7 tweets | 4 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job