According to a survey by the Confederation of British Industries and PwC, the possibility of a no-deal Brexit has driven the level of business activity at British banks to the lowest levels seen since 28 years. Meanwhile, optimism about overall business in the financial services sector saw the steepest decline since September 2008.

The level of confidence in the financial services sector has either declined or stagnated for 15 consecutive quarters. This is especially worrying since London is known to be one of the most powerful financial hubs in the world.

Even though the Brexit situation remains unclear, financial firms in Britain have spent millions of pounds so far to prepare for Britain’s exit from the EU. The survey also reveals that profits slipped at the fastest pace since June 2009, even as hiring of staff registered the fastest growth rate seen since December 2006.

Businesses in the financial services sector are also increasingly putting off plans to launch new products and services in preparation for any possible turbulence in the aftermath of Brexit. The outlook remains bleak into the next quarter with business volumes forecast to slide even lower.