As per a research, despite growth in the financial sector with rising profits and improving performance of financial services, the recovery is moving at a slower pace and is not meeting the expectations.
A recent survey conducted by Confederation of British Industry/PricewaterhouseCoopers Financial Services revealed that the UK financial services sector experiences the fastest growth rate in the past three months till September, as compared to the era of financial crisis two years back.
A surge in business volumes was posted by more than one-third of the Companies, while only 9% witnessing a decline in the three months ending in June. They experienced a balance of +28, the most optimistic since June 2007, but less than the expectations of +63. Also, in the fifth quarter, the profits were increasing.
"Activity picked up in the financial services sector in the last three months at a pace not seen since before the credit crunch. Although this growth was slower than hoped”, said Ian McCafferty, CBI Chief Economic Adviser.
With the increase in the business related activities and offshore customers, the banks witnessed high volumes for the three months to September.
Though the banks are performing well, but the business is still under the restrain of economic environment, as stated by Andrew Gray, UK Banking Leader at PricewaterhouseCoopers LLP. He added that there is demand in the corporate sector, but the retail sector is suppressed.