This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

CFOs rediscover taste for expansion

Optimism levels are increasing among chief financial officers (CFOs), with expansion plans rising up their priority lists, according to survey results from Deloitte. The optimism of CFOs working within large businesses is now closing in on a three-year high.

And the business advisory firm, which canvassed the views of 116 CFOs employed by the likes of FTSE 100 and FTSE 250 companies, found that expansion plans are being prioritised more than cost-cutting and building cash reserves for the first time in two years.

Shifting priorities

The CFO Survey for the third quarter of 2013 revealed that just 29% of CFOs are prioritising cost-reduction measures, while 35% are keen to focus on increasing their company’s cash-flow. In comparison, 40% now aim to prioritise expansions into new markets or favour the development of new products and services. Their hiring, capital expenditure and discretionary spending expectations for the coming 12 months have also reached their highest levels for around three years.

Growing confidence

Commenting on the data, Ian Stewart, chief economist at Deloitte, said CFOs are displaying a
“new mood of confidence”, as they now see “fewer risks in the global economy and greater opportunities for expansion”.

Deloitte’s report showed that more than half (54%) of the country’s top CFOs now feel the time is right for them to add some risk to their balance sheets. This is significantly higher than the second-quarter reading of 45%.

Meanwhile, the proportion of respondents who feel their employers face high levels of financial and economic uncertainty has dropped, from 97% in the closing quarter of 2011 to just 62%.

In terms of the UK’s wider economic policy, eight in 10 (82%) CFOs now believe interest rates will rise by the year 2015. The report indicated that many CFOs are sceptical about whether the Bank of England’s ‘forward guidance’ scheme will keep the base rate at 0.5% until 2016 as planned.

Expansion plans take priority

Mr Stewart said “broad-based optimism” is currently evident among CFOs.

He added: “A record 54% of CFOs say that now is a good time to take risk onto their balance sheet. High levels of corporate cash and favourable credit conditions suggest that major corporates have the firepower to invest.”

The expert concluded: “The priority now is expansion and the balance-sheet cycle has turned decisively towards growth.”


About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Deloitte Malta refers to a civil partnership, constituted between limited liability companies, and its affiliated operating entities; Deloitte Services Limited and Deloitte Audit Limited. The latter is authorised to provide audit services in Malta in terms of the Accountancy Profession Act. A list of the corporate partners, as well as the principals authorised to sign reports on behalf of the firm, is available at

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

© 2013. For information, contact Deloitte Malta.

Last Updated: 


Nick Captur
Deloitte Malta
Job Title:
Leader Clients & Markets
+356 2343 2714