The gross value added (GVA) of the financial services sector in the island of Jersey slid 2% in real terms in 2017 compared with 2016, according to latest figures by Statistics Jersey.
The study, which polled banks, fund managers, investment trusts, accountancy and legal firms, revealed that the fall was driven by a 5% real-term decline in the banking sub-sector. The decline was mainly due to reduced GVA of banking entities having less than 100 full-time equivalent (FTE) employees.
Real-term GVA was found to rise by 1% for other finance sub-sectors combined.
In real-terms, GVA in the fund management sector remained unchanged while that of the legal sector dropped 10%.
The trust and company administration sector performed well, with GVA increasing 5% in real terms. Real-time GVA for accountancy, mixed income and other increased 11%.
Further, real-term productivity, which is measured by total GVA per FTE employee, dropped 3% in 2017. The decrease was universal across the sub-sectors, with the exception of accountancy.
However, payment per FTE employee increased 12% to £6,500 in the previous year compared with 2016, while mean employment costs per FTE employee increased 9% year-on-year to £70,000.
On the other hand, the number of local employees hired directly from school and university fell to 250 from 320 in 2016.