Jersey's Financial Industry Saw Profit Upswing In 2011

Max Skjönsberg

28 June 2012

Annual net profits among financial services in Jersey for 2011 were three quarters higher than in 2010, but the hike was largely thanks to a small number of success stories, according to the latest government figures.

A government survey by the UK crown dependency showed that total net profits were £1.096 billion ($1.7 billion) last year. Banking made up the lion's share with net profits of £841 million. Employment in the sector of 12,090 in 2011 was at the same level as in 2010.

Asia is on the rise as a focus for business development in Jersey over the next three years and was cited as the key region by twice as many firms last year as in 2010.

Looking forward for 2012, 54 per cent of firms anticipated an increase in profitability, and 51 per cent think they will employ more people. Both figures are slightly lower than in last year's survey.

“2011 was still a turbulent time for our industry, due to the volatile nature of the global markets and economic uncertainty presented by the eurozone crisis," said Geoff Cook, chief executive of Jersey Finance, the promoter of the island's financial industry. "What these results reflect is that Jersey’s finance industry has maintained its workforce and also continues to increase investment in the local economy despite the pressures from global markets."

"We have already witnessed signs of growth in 2012, with positive figures for funds, and company formations reported at the end of the first quarter," Cook said.

Separately, a senior Jersey politician said in an interview with UK national newspaper earlier this week that Jersey could break with the UK after attacks on the island's financial services industry. Speaking to the Guardian, Jersey's assistant chief minister, Sir Philip Bailhache, said that the island is being treated unfairly and has to be prepared to become independent.