UK finance jobs cut at fastest rate since 1993-CBI

Britain's financial services industry is cutting jobs at the fastest rate for 16 years as it cuts costs to soften the blow of a steep fall in profitability, a survey showed on Monday.

The CBI/PWC financial services survey, covering the three months to early March, found 9 percent of companies reporting a rise in business volumes and 56 percent saying volumes fell, giving a net 47 percent of companies reporting a fall.

That marked a sixth successive quarter of declines.

A balance of 47 percent of firms also reported a fall in profitability, a slight improvement from a record drop in the previous survey. A net 27 percent of firms expected a further decline in coming months.

A balance of 40 percent of firms reported a reduction in staff during the latest quarter, the heaviest fall in numbers employed in financial services since June 1993, the report said.

A similar fall (-38 percent) is forecast in the current quarter as the global economic crisis continues to hit banks, insurers and other financial firms.

A net 45 percent of companies surveyed said they see a high likelihood of further deterioration in financial market conditions, and two thirds of respondents said they thought Britain was a less competitive financial services centre as a result of the credit crisis.