Private banks benefit as financial sector expands most since 2007?

Private banks may be among those benefiting, as it is revealed the UK financial services sector grew at its fastest rate since June 2007 over the past three months.

The latest survey from the Confederation of British Industry (CBI) and PricewaterhouseCoopers shows profits in the sector increased for the fifth quarter in a row, indicating private banks might be seeing an upturn in demand.

Of the groups surveyed, 37 per cent reported business volumes rose, while only nine per cent experienced a decrease, giving an overall balance of +28 per cent.

However, this falls short of the predicted +63 per cent, indicating the industry still has some way to go before fully recovering the strength seen before the global economic crisis.

Chief economic adviser to the CBI Ian McCafferty commented: "There is ongoing concern that prospective regulation may hold back business expansion … but financial services firms have become more worried that weak levels of demand will dampen growth prospects."

July and August were poor months for financial groups in the stock markets and this latest report may improve the value of shares in the coming weeks.  ADNFCR-2318-ID-800083506-ADNFCR