Only one-third of financial services executives expect their industry will recover ahead of the national economic rebound, although 78% of them expect business conditions to improve in their sector in 2010, according to a new survey from KPMG LLP.
As a comparison, two-thirds of technology executives in the survey believe their industry will recover more quickly than the national economy. Silicon Valley-based executives were even more bullish, with 77% of them saying their recovery would outpace the nation's.
The KPMG survey canvassed nearly 400 CEOs and C-Suite level executives in finance, technology, retail and food and beverage industries. Overall, 76% of them expect business conditions in their sector to be better one year from now."The downturn impacted the banking and financial services sector to a greater degree than most industries and therefore it will take longer to recover," said Tony Anzevino, partner in charge of KPMG LLP's banking and finance practice. "And although the results of the survey suggest the industry has hit the bottom of the downturn, clearly there will be major challenges ahead."
Nearly three-quarters of the financial services executives surveyed said they do expect stronger revenue next year and 68% expect improved profitability. They weren't so optimistic on employment, however, with 70% responding that they thought employment in their sector would be stable or worse in 2010.
The KPMG study was done from May through July of 2009 and reflects the response of 390 CEOs and C-Suite level executives-130 each from technology and financial services and 65 each from retail and food and beverage.