The latest figures from the States of Jersey saw income of its finance sector and a number of its finance sub-sectors decline.

Jersey’s financial services sector, as measured by gross added value, declined by two per cent in real terms in 2017, according to the latest States of Jersey statistics. In real terms, total GVA in 2017 (£1.74 billion) ($2.3 billion) was £700 million below the previous peak recorded in 2007.

Its banking sub-sector suffered a slight one per cent decrease from 2016, when it was £860 million, to £850 million in 2017. The report said this decrease was largely attributable to reduced GVA of banking entities employing less than 100 full-time staff.

The income for its trust and company administration sub-sector rose by nine per cent in 2017, which stood at £490 million, from £450 million in 2016.

Lastly, its fund management sector income remained at £90 million, the same amount it was in 2016.

This comes at a time when international finance centres like Jersey, Guernsey and the Isle of Man need to plan for the UK’s exit from the European Union. This publication recently visited the Isle of Man to discuss the financial services sector at the Islexpo 2018 event, with attendees striking a positive stance towards the island's Brexit plans.

 “The reality is that the world is very different now from what it was ten or twenty years ago," said Geoff Cook, Jersey Finance chief executive. "We’re finally emerging from a decade-long global economic crisis, we’re operating with far more regulation, and there is a fair amount of uncertainty, particularly in Europe, around Brexit. All that has an impact and we are not immune to it. That said, our finance industry continues to be a major contributor to the Island’s economy. Overall, the reality is the cost of business is rising and firms are needing to work harder than ever to generate the kind of revenues they used to before the crisis."

Cook added: “Globally the banking sector has gone through a challenging time over the past decade. We’ve seen consolidation in the sector, rafts of new regulation, and a low interest environment internationally. All that impacts productivity, but compared to other centres, actually our banking sector remains pretty resilient and it continues to be the engine room of our industry. Parent groups of the Island’s banks continue to find it attractive to raise deposits through Jersey to improve their bank-wide liquidity. Growth is also emerging from Africa and Asia, for example, where wealthy domestic clients are looking to invest outside their home countries and are attracted to Jersey as a reputable IFC with high regulatory standards."

"More widely, it’s clear that the increased requirement for regulation and information exchange has affected productivity, and we’ve seen steady growth in regulatory and compliance staff. That is of course absolutely right, these are vital roles and we want to do our business correctly here, but as non-revenue generating roles, it has inevitably diluted productivity. Given that we are in an incredibly challenging environment, the figures for last year remain largely flat and there’s nothing that jumps out as being particularly surprising. We’re actually seeing our accountancy and trust, company and fund administration sectors performing well. That’s pleasing, and it tallies with our refreshed strategy published earlier this year, which aims to address the challenges being seen in the banking sector and elsewhere, as well as digital transformation and global political uncertainty. That kind of forward thinking means we’re well placed to deal with these challenges," Cook added.