The survey for the second quarter of 2015 reflects the unweighted average confidence of four segments of financial services, namely:
- Retail banking
- Investment banking
- Asset management and
- Life insurance
The EY Financial Sector Confidence Index (EY FSI) increased from 73 in the first quarter to 77 in the second quarter of 2015. This is in line with the historical average of 76, which indicates that financial sector confidence is currently neither high nor low.
Life insurers remain the most optimistic of the financial services segments tracked, with retail banks becoming the least confident of financial services companies.
It is interesting to note that the upsurge reported for asset managers from 45 index points in the first quarter to 74 in the second occurred despite the “…generally weak macro environment and moribund equity market.”
“Asset managers curtailed all costs, with the exception of distribution costs. The hiring of additional staff was halted and the head count held stable. Back office costs subsided in line with the weaker inflows. IT spending was kept in check and marketing costs cut. Bonus payments actually shrunk, due to the weak performance of local equities.”
Click here to read summary of the E & Y Index review.
