Outlook for financial services

Welcome to the Autumn edition of the Ernst & Young Eurozone Forecast: Outlook for financial services

After five years of feeble growth, the Eurozone is back in recession. The forecast for the foreseeable future is not much brighter. Speculation is rising: could this be Europe’s “lost decade”?

But there are perhaps some grounds for optimism. Economic uncertainty could drive an increase in savings and investment products. And the proposed banking union may start to restore investor and market confidence. Is this emerging optimism fleeting or sustainable? The next few months will be key to finding out.

Is this Europe's "lost decade"? Policy uncertainty continues to cloud the outlook for financial services organizations.

What do Eurozone developments mean for your financial services organization and the wider industry? Read our Autumn 2012 forecast to find out more, or contact us for in depth insight on the issues affecting your organization.

Outlook for financial services – key highlights Autumn 2012

• Eurozone bank lending is predicted to decrease by 2% in 2012
• Bond issuance is set to rise above bank lending this year, indicating that banks are being dis-intermediated from the financial system
• Non-performing loans are forecast to rise to a euro-era peak of 6.6% in 2013
• Growth in equity markets is predicted to result in a 9% increase in Assets Under Management in 2012
• Uncertainty over the economy may result in an increase in savings and investment products, benefiting life insurers and asset managers

Andy Baldwin Head of Financial Services, Europe, Middle East, India and Africa

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