When will the banking market return?

With today's(29th April 2009) recent surge in first quarter profits posted by Santander and the Abbey Bank in particular, are we starting to see the first green shoots of recovery in the banking environment and therefore the financial services recruitment industry? I am no economist and can only give a recruiters view on the situation but recent events do seem to indicate that we are perhaps starting to see a small increase in profits generated by financial services organisations, which should theoretically bring with it an increase in the amount of recruitment undertaken by the banking industry.

The stock market experienced a small rise on the back of the banking markets better than forecasted pre tax profits and this indicates a small but significant recovery. Of course, with the UK economy still in the mire of a supposedly full scale depression it could be a long time yet before we start seeing any upturn in the financial services recruitment market but it does however bode well for the latter part of 2009, despite the government telling us that 900,000 people will lose their jobs this year.

The recent increases in first quarter profits aren't quite across the board as yet and the mortgage market in general is still depressed but increased profits must mean increased consumer confidence and a slight easing on the restrictions in lending policy, which in turn will bring a need for an increase in financial advisory and mortgage advisory staff. Is quantitative easing beginning to take effect? Who knows, but after a year of headcounts and financial advisory positions being severely restricted any amount of recovery, however small, would be most welcome.

Working in the UK financial services recruitment industry, reliance on the 'big four' high street banks for financial services roles and the resulting lack of opportunity has brought about a heavy downturn in profitability. This has been offset by increased business development and marketing in order to generate alternative business from IFA organisations, Accountancy practices and assurance providers which has to a degree worked. However, the staple of most financial services recruiters is the banking environment and the financial advisory opportunities they bring, the holy grail of the PSL still being the aim, however,what good being on a PSL does if the jobs just aren't there, I don't know?

Speaking from experience, we have seen a small increase in jobs from the financial adviser or wealth management arms of the High Street banks very recently, resembling a small chink of light in the economic gloom. Hopefully it will increase and continue into the latter part of the year. And, if it manages to get back to resembling anything like it did last year in terms of the number of opportunities, both I and XL Recruitment will be happy bunnies!