Press Release - 19 December 2003

The Jersey Financial Services Commission has today, 19th December 2003 issued its quarterly report for the period 1 July 2003 to 30 September 2003.

Headlines:

• Bank deposits fell during the quarter by 0.4% to £155.7 billion.
• The total value of funds under investment management has increased by 3.2% during the last 12 months.
• The value of Collective Investment Funds held in the island is at an all time high at £108.2 billion.
  

Bank Deposits

Jersey bank deposits have remained at a similar level to those seen during the last quarter at £155.7 billion. There has in fact been a small decrease of £627 million (0.4%) in the total reported funds held on deposit over the last quarter. However there has been a 14% increase over the same quarter last year. (see Appendix B).

Approximately 85% of bank deposits are held in currencies other than sterling and the continued weakness of many of these currencies against sterling over the quarter will have had an effect on the reported values in sterling. Therefore, the underlying value of deposit balances in denominated currencies has continued to trend upwards.

The number of banking licences in issue remains at 55.

Figure 1

BANK DEPOSITS
(£ MILLION)AS AT 30 SEPTEMBER FOR EACH OF THE PAST FOUR YEARS

Funds

As of the 30th September 2003 the value of funds in the Island stood at £108.2 billion. This is an increase of 10.12% since the last quarter and sees the value of funds in the island at an all time high. This increase is partly due to the rise in the value of the underlying portfolios as a result of the recent improvement of the performance of the stock markets. It is also evidence of increased investment in the equity markets following two consecutive quarters of market improvement. Compared to the same quarter last year, the value of funds has increased by £11.3 billion or 11.68% (See Appendix A).

The number of funds has increased during the quarter from 466 to 480 and the number of sub-funds from 1841 to 1921.

Figure 2

COLLECTIVE INVESTMENT FUNDS
(£ MILLION) AS AT 30 SEPTEMBER FOR EACH OF THE PAST FOUR YEARS

Company Incorporations

The total number of incorporations during this quarter was 535, which shows a decrease of 14% over the same period last year. This trend has continued from the last quarter.

The number of 'fast track' incorporations for this quarter was 241 and the number of normal company incorporations for this quarter was 294. (See Notes to Editors.)

Against their self-imposed target of 95%, Registry recorded a 99.9%rate for normal two-day incorporations and a 97.5% rate for fast track companies for the quarter. (See Notes to Editors.)

Figure 3 (see also Appendix C) illustrates the number of new company incorporations throughout the past four years.

Figure 3

TOTAL NEW COMPANY INCORPORATIONS IN THE FIRST NINE MONTHS OF THE PAST FOUR YEARS

Investment Business

The total funds under investment management (class B of the Financial Services (Jersey) Law 1998) stood at £30.2 billion. When compared to the same quarter last year, this shows an increase of 3.2%.

As at 30 September 2003 the total number of clients of investment managers was 20,717 compared to a figure of 20,394 at the end of the last quarter. Both the increase in the value of funds under management and the increase in the number of clients again suggest investor confidence is beginning to return in respect of the equity markets.

Insurance Business

There were no new Category A licences issued during the third quarter of the year and no new Category B Insurance permits. No permits were cancelled.

Therefore as at 30 September 2003, there were 165 Category A permits in issue and 19 Category B permits.

Figure 4

ALL INSURANCE LICENCES AS AT 30 SEPTEMBER FOR EACH OF THE PAST FOUR YEARS

Conclusion

David Carse, Director General of the Commission, commenting on the quarterly statistics said today, "The Commission is encouraged by the figures seen in this report, particularly by the fact that the value of funds in the Island is at an all time high. Bank deposits have remained stable despite the relatively low interest rates currently available and the value of assets under investment management has grown. The Island's finance industry thus continues to perform well, which is positive for the Island as a whole."

Appendix A

Annual growth in Collective Investment Funds to date. £ Millions

Annual growth in Banks and Bank Deposits to date. £ Millions

Appendix C

Appendix D

For further information:

David Carse
Director General
Jersey Financial Services Commission

Telephone: +44(0) 1534 822011
Facsimile: +44(0) 1534 822001
Email: d.carse@jerseyfsc.org

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