"Additionally, profitability declined at a sharp rate over Q4. The falls in business volumes and profitability are likely to have contributed to a deterioration in firms' sentiment in the three months to December. The quarterly survey, conducted between 20 November and 9 December 2025, also found that FS firms expect trading conditions to improve somewhat in Q1 2026, with volumes and profitability growth set to recover."
"Business volumes continued to decline at a rapid pace in the quarter to December 2025 (weighted balance of -38% from -36% in September). However, firms expect that volumes growth will recover moderately over Q1 2026 (+18%). Sentiment amongst FS firms deteriorated in the three months to December, marking the sixth quarter in a row of falling and/or flat optimism (-20 from +3% in September)."
Business volumes in financial services fell rapidly in the quarter to December 2025 (weighted balance -38% from -36% in September). Profitability declined sharply over Q4 (-53% from -13% in September). Sentiment deteriorated to -20% in the three months to December, the sixth quarter of falling or flat optimism. The quarterly survey (20 Nov–9 Dec 2025) found firms expect moderate recovery in Q1 2026 for volumes (+18%) and modest profitability improvement (+6%). Average spreads were broadly flat in Q4 (-2%) but are expected to decline strongly in Q1 (-30%). Non-performing loans remained broadly unchanged (+1%). Headcount was broadly unchanged in Q4 (-1%) and expected to decline slightly (-8%). Investment intentions show higher IT spending and reduced capex in land & buildings and plant, vehicles & machinery.
Read at London Business News | Londonlovesbusiness.com
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