International banks expect to hire more staff at Irish operation in 2023

International banking and investment firms with a base in Ireland say they are planning to increase their headcount here over the coming year despite the shifting macroeconomic landscape and geopolitical uncertainty.

A new report, prepared by the Federation of International Banks in Ireland (FIBI), has found that Ireland was the sixth-largest exporter of financial services globally in 2021, the last year for which complete figures are available. This represents a jump of two places from 2020 when Ireland was eighth in the world.

A survey of the federation’s members also indicates that sentiment remains strong about the outlook for the rest of 2023 despite significant global headwinds.

Some 65 per cent of firms surveyed said they expected to increase employment here with 80 per cent indicating that they expected their Irish activity levels to expand this year.

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FIBI, which is affiliated to the Banking and Payments Federation of Ireland (BPFI), said Ireland now hosted 17 of the world’s top 20 banks with the broader international investment and banking sector employing 4,200 people at the end of 2022, up 16 per cent since 2019.

Wages and salaries in the sector reached “a new record of €900 million” last year, said FIBI chairman and Bank of America Europe chief executive Fernando Vicario in his foreword to the report.

The report highlights the “strong business platform” that some of the biggest players have built up here over the decades as one of the reasons for the recent growth of the sector here.

“Many of the chief executives commented on the strong pro-business environment which exists in Ireland. The commonalities in culture with other developed economies, especially with other English-speaking countries, and the way business is conducted were mentioned as among other key factors that are considered when deciding on the allocation of capital and new project,” FIBI said.

Looking ahead, Mr Viacario said these positive trends could not be “taken for granted” in the current climate.

“While we continue to monitor recent global developments in banking, the key challenges identified by FIBI members include the increasing regulatory landscape at both EU and domestic levels; geopolitical uncertainties including the continuing fallout from Brexit; as well as rising business costs, and cyber risks,” he said.