The value of UK financial services exports such as insurance broking and investment banking hit a record $19bn in 2004, a study has shown.
The global stock market recovery lifted sales in the City of London and exports grew by 9%, research firm International Financial Services London said.
Insurance was the largest foreign earner, with exports totalling 6.3bn.
The UK enjoyed a surplus in financial services trade with every major EU economy as well as the US and Japan.
Market recovery
2004 was a buoyant year for finance firms in London and the rest of the UK, according to data compiled by International Financial Services.
Net exports of financial services increased to 19.03bn from 17.48bn in 2003 and were 40% higher than in 2000.
The recovery in European and US stock markets boosted the income of investment banks and fund managers while the rise in trade of specialist financial instruments such as hedge funds continued apace.
Banking-related exports rose in value from 2.8bn to 3.7bn while income from securities dealing rose to 3.6bn.
“A number of different areas have been picking up,” said Duncan McKenzie, director of economics at International Financial Services.
“Equity markets were certainly picking up last year and firms have enjoyed increased commission from this recovery.”
Shipping growth
Finance banking insurance was the fastest growing edition finance hill insurance international management mcgraw risk series to exports, its foreign sales rising by more than 40% to a record 551m.
China’s economic boom has boosted international shipping
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Jeremy Penn, chief executive of the Baltic Exchange - which supplies trading information to more than 500 shipbroking firms - said British companies had benefited from the strong increase in freight prices.
About 50% of global freight tanker business is negotiated in London.
“The last couple of years have been good ones for the shipping industry,” he said.
“We have seen very high rates driven by growth in international trade, particularly in China’s boom.
“It has become profitable to own vessels of all kinds.”
European capital
The United States remains by some distance the largest export market for UK financial services.
The UK’s surplus with the US narrowed slightly in 2003, the most recent year for which figures are available, but still remained above 5bn.
Its surplus with the EU totalled 4.8bn in 2003, including a 1.1bn positive balance with France and a 895m surplus with Germany.
Mr McKenzie said the figures reflected London’s pre-eminence as Europe’s financial capital.
“London has consolidated its position as the leading international financial centre in Europe,” he said.
“Frankfurt, Paris and Milan are important regional and national centres, but London is the place where most international business in Europe is car insurance finance company.”
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