Bank jitters hit recruitment firm

Michael Page International, which employs over 1,300 people in the UK, said the strong growth in bank placements in the first six months of 2011 had slowed in recent weeks due to a block on new recruitment.

Recent weeks have seen big job cuts announced by Lloyds Banking, HSBC, Barclays and Royal Bank of Scotland as conditions in both retail and investment markets have become more difficult.

Banks are also waiting to see the outcome of the Independent Commission on Banking’s final report in September, which is tipped to recommend a ring-fence between retail and investment banks.

The bank sector accounts for 10% of Michael Page’s profits overall but despite the slowdown and a UK market described as “challenging”, the recruiter said it still expects to make progress this year.

Underlying profits rose by 38 per cent to £45.5m in the half-year to June, with growth in both permanent and temporary placements. Revenues rose by 26 per cent to £502m.