CBI sees improved private banking services business

Private banking services are becoming more likely to experience increased business volumes, an upbeat new report from the Confederation of British Industry (CBI) has suggested.

According to the study, over the second quarter of 2009 28 per cent more financial firms saw a decline, rather than a rise, in business volumes.

While still a net negative, these results are a big improvement over the -47 per cent balance seen over the first quarter of the year.

A similar strengthening in the market was observed in company profits.

The balance of firms seeing an increase in income stood at -23 per cent, again up from -47 per cent over January-March.

CBI offered a cautious welcome to these new data.

’Some parts of the financial services sector look like they may be starting to come through the worst. The pace of decline in incomes and profitability is slowing, and business volumes are expected to rise in the next quarter,’ Ian McCafferty, CBI chief economic adviser, said.

The UK officially entered recession in late 2008 and the economy contracted by a further 1.9 per cent over the first quarter.

However, firms including the National Institute for Economic and Social Research have suggested that output could have bottomed out and the economy might now be on the road to recovery.ADNFCR-2318-ID-19240435-ADNFCR