Factbox: Weighing Value of Financial Services in UK Economy on Day of Brexit Vote

Britain, Europe’s biggest financial hub, votes today on whether to stay in or leave the European Union.

The country’s financial and professional services industries are considered as the most vulnerable to an exit from the 28-nation bloc although much depends on how Britain’s would separate from its EU partners and whether it could retain full access to Europe’s capital markets.

The following highlights the significance of these industries to the British economy and Europe’s financial services industry.

• Nearly 2.2 million people work across the UK in financial and related professional services. Two thirds are employed outside London.
• UK financial and professional services contributed 190 billion pounds ($279.43 billion) to the UK economy in 2014. This represents 11.8 percent of UK economic output.
• UK financial services contributed 67 billion pounds in tax revenue in 2014/15, or 11 percent of total UK tax receipts.
• UK financial and professional services generated a trade surplus of 72 billion pounds in 2014, more than all other net exporting industries combined.
• Foreign companies have invested more than 100 billion pounds into UK financial companies since 2007.
• The UK is the leading exporter of financial services across the world. The UK’s financial services trade surplus of $97 billion in 2015 was more than the combined surpluses of the next three leading countries, the United States, Switzerland and Luxembourg.
• The UK has the fourth largest banking center globally. London is home to over 250 foreign banks – more than any other center. The UK accounts for 17 percent of international bank lending – more than any other center.
• 90 percent of U.S. investment banks’ European Union staff are based in the UK
• 45 percent of global trading in euros is executed in the UK
• 78 percent of capital markets activity by the other 27 countries in the EU is conducted in the UK
• The UK accounts for 41 percent of global forex trading. More US dollars traded in the UK than in the United States
• 76 percent of European hedge fund assets based in the UK
• The UK insurance industry is the largest in Europe and third largest in the world.
• Over 500 foreign companies are listed in London (on the Main Market of the London Stock Exchange and quoted on AIM).
• UK assets under management of the fund management industry totalled a record 6.8 trillion pounds in 2014 – the second largest in the world.
• The outstanding value of international bonds in the UK totalled around $3.2 trillion at the end of June.
• Over 20 banks in the UK – of which six are fully Sharia compliant – offer Islamic financial services.
• The UK is the leading derivatives center worldwide, accounting for 49 percent of trading in interest rate “over the counter” derivatives. Major derivatives exchanges located in London account for around 15 percent of global trade in commodities.
• Management consulting has been one of the fastest growing industries in the UK in the past few years. The UK has become Europe’s leading center for management consulting, generating some 13 percent of global fee revenue.

Sources: TheCityUK, Bruegel, Oliver Wyman, Alternative Investment Management Association, Bank for International Settlements

($1 = 0.6799 pounds) (Reporting by Sinead Cruise; editing by Jane Merriman)

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