ACTIVITY in the UK financial service sector was broadly stable over the past three months, and firms hope to see much better growth in the next three months a new survey by employers’ body the CBI and accountants PwC reveals today.

It said the profitability of financial services businesses improved for the third quarter running, although industry concern about the legislative burden is at an all time high.

Ian McCafferty, CBI chief economic adviser, said: “Activity in the financial services sector held steady in the last three months, and there are signs of better things to come. However, the picture remains mixed.

“Business grew in some areas, such as building societies, and fell in others, such as banking.

“Lending to private individuals rose a little, but lending to companies was down.

“Financial services companies hope lending will grow across their customer base over the coming quarter, lifting business volumes and helping profitability.”