CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.

Jersey Reports Healthy Finance Industry

Wednesday, December 14, 2011

Jersey has welcomed the "stable overall growth" achieved in the third quarter for the island's financial services industry, with the value of funds under administration in the jurisdiction growing to reach its highest level since June 2009.

Geoff Cook, the Chief Executive of Jersey Finance, the promotional agency for the island’s financial services industry, welcomed the statistics as proof of Jersey’s resilience amid a challenging environment globally.

The Net Asset Value of funds under administration increased by GBP1bn (0.5%) to GBP197.6bn during the third quarter of 2011. This is some 10.5% higher than in Q3 2010. However, the value of funds under investment management decreased by GBP1.4bn (6.3%) compared to the previous quarter to GBP20.8bn.

Jersey Finance reported that the territory’s banking industry also experienced growth during the quarter, which it attributed to strong demand from Far Eastern and Middle Eastern depositors as the territory’s promotional efforts begin to pay dividends. Banking deposits increased by GBP2.3bn (1.4%) during the third quarter of 2011, to GBP167.3bn.

Company formations also increased (by 78) in the third quarter, to a one-year peak of 33,194.

Commenting, Cook stated:

“Jersey’s finance industry performed well during the third quarter of 2011. Encouraging news was also received on the banking front with the announcement that Abu Dhabi Commercial Bank has successfully applied to operate in Jersey."

“We are particularly encouraged by the increase in the total number of Jersey funds, especially against a backdrop of challenging fundraising conditions. A total of 53 new funds were added to the total funds stocks during the period – the best quarterly performance since September 2010. Whilst a 6.3% decrease in the net asset value of funds under investment management was recorded, this performance is still relatively good when benchmarked against key financial market indices. The FTSE 100 index decreased by more than 15% over the same period."

“Increasingly, Jersey is a key jurisdiction for corporate listings. Our members are receiving enquiries from many Indian and Chinese businesses to set up capital raising structures using Jersey companies. This is supported by the total number of live companies in Jersey increasing for a fourth consecutive quarter."