JERSEY is bouncing back from the recession and has announced improved figures for the first quarter of the year.
Over the period, total banking deposits increased by some 7.5% to GBP177.6bn (USD258.5bn).
The statistics, collated and prepared by the Jersey Financial Services Commission for the three month period ending March 31, 2010, also show that the net asset value of funds under administration grew by 8.6% and 26 new funds were established, compared to only seven in the final quarter of 2009.
There was also a significant increase in banking deposits from the Far East, now accounting for 8.9% of the total, compared to 3.5% at the end of the final quarter of 2009.
The headline figures from the statistics are as follows:
• Banking deposits increased by GBP12.4bn (7.5%) during the first quarter of 2010 from GBP165.2bn to GBP177.6bn
• The Net Asset Value of funds under administration increased by GBP14.4bn (8.6%) from GBP166.2bn to GBP180.5bn during the first three months of 2010. The total number of funds increased by 26 from 1,294 to 1,320
• The value of funds under investment management increased by GBP1.3bn (6.8%) compared to the previous quarter from GBP19.7bn to GBP21bn
• Company formations were up 22.9% compared to the first quarter of 2009. The total number of live companies on the register increased by 305 during the first quarter of 2010.
Geoff Cook, chief executive of Jersey Finance – the promotional agency for the island’s finance industry, said, “It is encouraging that we have started 2010 with all key sectors of the industry reporting growth after a subdued 2009. We believe this reflects Jersey’s position as a leading and robust international finance centre, which continues to enjoy the confidence of investors and professional advisers worldwide.
“The improvement in the deposits attracted from the Far East is an encouraging development as Jersey has been actively focusing its efforts in engaging with emerging markets, while the rise in funds business generally is also to be welcomed.
“However, as this is the first quarter, it is too early to distill any trend from these figures while the markets are still volatile. Low interest rates and growing consumer and business confidence are positive factors in sustaining the economic recovery but governments worldwide face the major challenge of tightening their fiscal policies without impeding growth.”
“We know there is no room for complacency and Jersey Finance will continue its intensive programme of business development visits from which our members are already reaping the rewards, with some important business wins from emerging markets such as India and China.”
Richard Thomas, chairman of the Jersey Funds Association, added, "I am pleased to note that both the assets under management and the number of funds and the separate pools within those funds have risen over the quarter, confirming the resilience of the range of Jersey regulated funds. In addition, there continues to be a slow but steady addition to the number of unregulated funds which have been established in the island."
