Third quarterly Deloitte survey of Chief Financial Officers (CFOs) of major Irish-based companies, conducted among CFOs of listed companies, large private companies and Irish subsidiaries of overseas multinationals in March 2010.
- Compared to Q4 2009, CFOs are slightly more optimistic about the overall financial outlook for their companies, with an 8% increase on last quarter
- When questioned on the performance of the ISEQ in 12 months time, the majority of respondents expressed the view that it would be higher than today
Banking and capital markets
- 60% of CFOs believe that NAMA will ultimately have some positive impact on the availability of credit; 52% indicated that it will have a positive impact in restoring the credibility of the banking sector
- For businesses seeking capital, Irish banks are the least preferred method of external funding
- CFOs do not see the supply of credit improving in 2010 but there is optimism among a majority that 2011 and beyond will see increased availability
Profitability and competitiveness
- Key priorities for CFOs are still revenue and profit growth/maintenance and cost reduction
- 58% of respondents indicated that exchange rate risk has increased this quarter signalling expectations of higher euro volatility related to the Greek financial crisis, with 60% also expecting the dollar to strengthen against the euro in the next 6 months
- There is consensus on the outlook for Irish interest rate movements with 92% expecting Irish lending rates to rise in the next 6 months
The Deloitte CFO Survey is the only survey that seeks to establish the views of CFOs on financial markets, the economic outlook and business trends.