A survey by the Confederation of British Industry (CBI) has found that financial services companies are suffering record falls in profits.<\/p>\n
The fourth quarter of 2008 saw a fall in business from 87 such companies, with the CBI citing 2008 as a year the financial services industry \u2018would rather forget\u2018.<\/p>\n
The survey, which was co-conducted by PricewaterhouseCoopers (PWC), also found that thousands of jobs are being lost each month.<\/p>\n
The sector spans banks, building societies, insurance companies, fund managers and securities trading firms and employs approximately one million people.<\/p>\n
According to the CBI, job losses in the sector are running at between 8,000 and 10,000 a quarter and this is expected to increase towards the middle of 2009.<\/p>\n
John Cridland, CBI\u2019s deputy director general, said there will be further job losses and cuts in investment as income and profitability have fallen and this will have a devastating affect on the rest of the economy.
\nMeanwhile, John Hitchins of PWC said not since 1998 has the UK banking sector suffered such a fall and further falls are expected as the UK moves deeper into recession.<\/p>\n
The CBI is urging the Government to take action and said credit is the number one priority.
\nIn related news, accountancy group Ernst & Young (E&Y) has found that profit warnings by firms listed on the London Stock Exchange reached a 7-year high last year.<\/p>\n
E&Y said that the number of profit warnings by UK-listed companies was 449 in 2008, 17% higher than the previous year.<\/p>\n
The economic downturn has had a major impact on almost all industries and according to the E&Y, the next 12 months looks set to be just as bad, if not worse.<\/p>\n","protected":false},"excerpt":{"rendered":"
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