87 % of Financial Services Leaders Confident in Q1 Growth, According to KPMG

A Streak of Confidence in Financial Services

87 % of leaders feel optimistic about Q1 2024

A fresh KPMG poll shows a whopping 87 % of financial‑services executives are confident that the first quarter of 2024 will bring growth – a figure that climbs to 89 % among banks.
Takeaway: Most industry chiefs think the market will keep moving forward, even if the economy’s a bit shaky.

Profitability looks bright, but the threat signs are clear

Profit angle – 83 % say this quarter will be profitable.

Concern corner – 56 % pin inflation as the biggest hurdle, while 46 % flag interest rates as a major obstacle.

Bottom line: The money‑makers are upbeat, yet they’re wary of the tightening grip of regulators and a persisting price surge.

The 160 executives who answered

KPMG surveyed 160 chiefs across the sector, asking how they see the next twelve months. Here’s what they cooked up:

Financial‑services leaders slam the brakes on

Issue	How many said it mattered?
Inflation	56 %
Interest rates	46 %
Regulatory squeeze	73 % think it could hurt the UK’s global status

Pro tip: The majority are saying: “We need to slow down the rules, sweeten the tax system, and fight inflation if we want to stay top‑dog globally.”

Where banks stand

Highest confidence – 84 % of banking bosses are optimistic about Q1.

Future outlook – 73 % trust the UK can keep its spot as a world‑class financial centre for the next three years.

Quote carousel

Karim Haji (KPMG) – “Seeing leaders head into the new year with confidence amid economic turbulence is fantastic. It’s a sign the sector still believes in growth.”Wayne Johnson (Encompass Corp.) – “Even with 2023’s turmoil, the optimism shown glass‑clear. It’s a reminder we must lean on tech to cope with more stringent rules.”

What leaders want from policymakers

Ease regulatory pressure – cut red‑tape without cutting corners.

Revamp the tax system – make it smoother, leaner, and friendlier for businesses.

Tackle inflation – get the spending‑price balance right.

Bottom line

While the scene looks good, executives are still keeping their eyes on the price‑tags and regulatory ‘speed bumps’ that could stall the UK’s global momentum. The message? Stay optimistic, but plan smartly.

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