A new report into Ireland’s international banking sector shows that Ireland is now the eighth largest exporter of financial services in the world and is the fifth largest exporter of financial services in Europe.
Its contribution to Ireland’s corporate tax receipts has also jumped significantly with financial corporations alone, accounting for almost a quarter of Ireland’s corporation tax in 2019.
The report, which examines the contribution of the international banking community to the Irish economy, has been published by Banking & Payments Federation Ireland (BPFI) in conjunction with its affiliate the Federation of International Banks in Ireland (FIBI).
The country benefits from the continued growth of the sector with latest figures showing the financial services sector now employing some 46,600 people and spending over €1.4 billion directly in the economy.
Assessing the successes and strength of the sector the report’s key findings include the following:
• Ireland had the 19th largest international banking sector in the world in Q4 2019 with cross-border assets worth $407 billion according to the Bank for International Settlements. IFSC banks accounted for two-thirds of the total, according to the CBI.
• The total direct spend by foreign-owned financial services enterprises on payroll, Irish materials and Irish services rose to €1.366 billion in 2018, up from €0.809 billion five years earlier. IFSC banks spent some €0.8 billion on wages and salaries alone in 2019.
• According to the OECD the financial services sector in Ireland accounted for 7.2% of value added in 2019, the eighth highest contribution amongst the OECD member countries.
• In 2019, Ireland was the eighth largest exporter of financial services in the world according to UNCTAD. The value of financial exports from Ireland rose to almost €16.9 billion in 2019.
Speaking on the launch of the report, Chair of FIBI, Derek Kehoe said, "The numbers in this new report speak very clearly themselves – in 2019 financial services accounted for almost a quarter of total corporation tax receipts and ranked the 5th largest exporter of financial service in Europe. Employing over 46,600 people across the country from North to South and East to West, international financial services firms in Ireland spent over €1.4 billion directly into the economy on salaries, services and Irish materials."
He added, "These are significant indicators and now more than ever when the Covid-19 crisis at home and abroad has shaken the domestic economy Ireland is extremely fortunate to have a Foreign Direct Investment model, with a strong pipeline of future investment, to help offset the challenges that this pandemic has brought."