Three in five pharmacies expect their profits to increase in the next 12 months, according to a report by Lloyds Bank.

The bank's healthcare confidence index cited pharmacy as having “the second most optimistic outlook” behind dentistry but ahead of general practice.

“Pharmacists’ confidence took a big knock three years ago when the government announced significant changes to their funding, and while those reforms have clearly had an impact, this survey shows a sector with real ambition,” the report said.

“While the sector acknowledges the potential impact of competition from online pharmacies, their ambitious mindset is evidenced in the fact that the sector also sees growth opportunities in embracing the electronic prescription service.

“Overall, most pharmacists (60%) now expect to grow profits over the coming 12 months, and the vast majority (94%) are pursuing growth.”

The report, however, said four in five pharmacies, or 79% of pharmacies, expect financial pressures on their businesses to increase in the next five years.

Picture: petekarici (iStock)