International banks operating in Ireland expect an expansion in business activity this year, the representative body for the sector has said, despite an increasingly challenging geopolitical environment.
The Federation of International Banks in Ireland (FIBI) has published the results of a survey of its members, revealing that just over two-thirds expect to boost their Irish headcount this year.
Some 44 per cent of FIBI members, meanwhile, expect their activity levels to grow this year.
FIBI chairwoman and Citi Ireland country head Davinia Conlan said the external environment for banks operating in the Republic is difficult at the moment.
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“FIBI members are keenly aware of the risks presented by economic uncertainty, supply chain disruption and trade protectionism, with 67 per cent of survey respondents identifying geopolitical tensions as a challenge,” she said.
“Closer to home, the overall regulatory burden remains a significant challenge, cited by half of FIBI members. Regulatory simplification has long been a priority for FIBI and its members.”
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Ireland is the seventh largest exporter of financial services in the world and has established itself as a “major European and global hub for international banking and investment firms”, Conlan said.
“The economic contribution made by these firms is very significant, with foreign-owned business, financial and other services firms responsible for €6.5 billion in direct spending in the Irish economy in 2024,” she added.
“That contribution is set to grow further with 67 per cent of respondents to a recent FIBI member survey expecting the level of business activity in their Irish operations to increase in the year ahead.
“This positive outlook is also reflected in employment, with FIBI member firms currently employing almost 17,700 people, up over 20 per cent compared to last year, and 44 per cent of survey respondents expecting their firms to increase employee numbers during 2026.”
