(Reuters) - Banks have said they could move thousands of jobs out of Britain to prepare for the country’s planned exit from the European Union.
Financial service companies need a regulated subsidiary in an EU country to offer products across the bloc, which could prompt some to move some operations out of Britain if it loses access to the European single market.
If this happens, almost 10,000 finance jobs could move overseas, a Reuters survey found.
Bank of England Deputy Governor Sam Woods said that Britain’s financial sector could lose up to 75,000 jobs.
Following are related stories about top banks (in alphabetical order):
ASSOCIATION OF FOREIGN BANKS IN GERMANY
The association expects 3,000 to 5,000 new jobs in Frankfurt over the next two years, its head Stefan Winter, of UBS, told Welt am Sonntag in June. He said he expected 12 to 14 major banks to expand their Frankfurt sites significantly or build new ones.
BANK OF AMERICA CORP
Bank of America BAC.N has picked Dublin as a new base for its EU operations.
The bank said in August that its businesses and results could be adversely affected and it may have to incur additional costs if Brexit limited the ability of its UK entities to conduct business in the EU.
Barclays BARC.L has signed a lease agreement for more office space in Dublin as it prepares to expand its operations there to cope with the impact of Brexit.
Chief Executive Jes Staley has said that the group will keep the bulk of its activities in Britain and any changes to how the bank operates would be small and manageable.
Staley said that Barclays is having to put plans in place for dealing with Brexit without clarity on how political negotiations will go.
BNP Paribas BNPP.PA may move up to 300 London investment bank staff because of Brexit, depending how clients adapt and the French bank's efforts to win new UK business, a source said.
The company had 3,123 staff in its corporate and institutional bank in Britain at end-2016, down from 3,294 a year earlier, internal documents seen by Reuters showed.
Citigroup C.N said its private bank is to set up a booking centre in Luxembourg to ensure it can continue to serve EU clients after Britain leaves the bloc in 2019.
The U.S. bank has said it may need to create 150 new jobs in the EU and confirmed it would headquarter its EU trading operations in Frankfurt. It had previously said it would move a “couple of hundred” jobs outside London.
The company’s chief executive for Europe, the Middle East & Africa told a French newspaper that the bank was applying for a licence to conduct sales and trading activities in France.
Credit Agricole CAGR.PA, France's third-biggest listed bank, could relocate about 100 employees from its London hub to France out of 1,000 based there in the case of a "hard" Brexit, its chief executive said.
The group is to move its European government bonds trading platform from London to Paris in September 2017, a spokeswoman told Reuters.
Credit Suisse's CSGN.S Chief Executive Tidjane Thiam said in September that his bank is relatively well placed to deal with Brexit and that only 15-20 percent of volumes in the investment bank would be affected.
DAIWA SECURITIES GROUP
Daiwa Securities Group 8601.T said it will set up a subsidiary in Frankfurt, which its head had previously touted as its favoured destination as London-based staff could easily be transferred to its investment banking branch in the German city.
Japan’s No. 2 brokerage has said it would still keep staff in London even after Brexit. It has 450 staff working in the EU now, mostly in the British capital.
Deutsche Bank DBKGn.DE is beefing up its presence in Frankfurt. Chief Executive John Cryan said the German lender expected to add new jobs in Frankfurt, where it will replicate a structure that is interchangeable with its London operations and evolve as Brexit negotiations unfold.
The bank is scouting around for another large property in Frankfurt that could house hundreds of employees.
The group had warned in April that up to 4,000 UK jobs could be moved to Frankfurt and other EU locations - the highest potential move of any bank.
Settlement bank Euroclear is looking at setting up a branch or subsidiary to provide a route between its UK and Irish markets, the head of its UK and Irish operation said.
FRENCH BANKING FEDERATION
French banks could shift about 1,000 jobs from London to Paris to keep staff in the EU, the French Banking Federation said.
Goldman Sachs GS.N Chief Executive Lloyd Blankfein said the bank would have hubs in Frankfurt and Paris after Brexit and that it would be up to the staff to decide where they want to move to from London, he told French newspaper Le Figaro.
Handelsblatt reported in January that Goldman Sachs is considering moving up to 1,000 staff to Frankfurt because of concerns over Brexit.
The U.S. bank will begin moving hundreds of people out of London before any Brexit deal is struck as part of its contingency plans, the CEO of its European arm said in March.
Wolfgang Fink, co-chief of Goldman Sachs in Germany, said the bank may triple or quadruple its presence in Frankfurt.
The bank has since agreed to lease office space at a new building in Frankfurt as it prepares for Brexit, a spokesman for the bank said.
On Oct. 19 Blankfein said he would be spending a lot more time in Frankfurt as the bank pushes ahead with plans to make the German city a major base.
Blankfein also expects to fill the firm’s new European headquarters which is currently under construction in London, but said Britain’s exit from the EU left much outside the bank’s control.
HSBC HSBA.L could spend up to $300 million moving jobs and parts of its business to Paris, CEO Stuart Gulliver said.
The bank may move fewer than 1,000 jobs to Paris, finance director Iain Mackay said on Oct. 30. Previous comments from senior HSBC executives had emphasised the number of jobs to move would be 1,000.
Investec INVP.L, INLJ.J is considering converting its London bank's Dublin branch into a subsidiary to ensure it has continued access to the European single market, Chief Executive Stephen Koseff told The Telegraph in May.
However, the Anglo-South African lender and asset manager would see only a small part of its business affected by Brexit, the newspaper quoted Koseff as saying. (bit.ly/2qywZzY)
JPMorgan Chase JPM.N, the biggest U.S. bank by assets, said in July that the bank would probably use Frankfurt as the legal domicile of its European operations after Brexit, though jobs could be moved elsewhere as well.
The U.S. bank has also agreed to buy a Dublin building with room for 1,000 staff. However, the bank, which employs about 500 people in Dublin, did not say how many jobs would be created or whether any positions would be moved from the United Kingdom.
JPMorgan has chosen Warsaw to host a new global operations centre that will employ several thousand people over the next few years, Polish Deputy Prime Minister Mateusz Morawiecki said.
The U.S. bank plans to hire more than 3,000 people in its new global operations centre in the next three years, the Polish Development Ministry said in September, though the moves are not directly linked to Brexit.
Julius Baer, Switzerland’s third-biggest private bank, is moving its European hub from Frankfurt to Luxembourg but will continue to keep its options open in London, chief executive Boris Collardi has said.
Julius Baer is opening three new UK offices as it looks to the bank for wealthy residents spooked by Brexit.
LLOYDS BANKING GROUP
Lloyds Banking Group LLOY.L, Britain's largest mortgage lender and the only major British retail bank without a subsidiary in another EU country, is close to selecting Berlin as a European base to secure EU market access.
Morgan Stanley MS.N has chosen Frankfurt to be a new base for its EU operations, a source familiar with the matter said, adding that 200 people could move.
One source said the U.S. bank will have to move up to 1,000 jobs in sales and trading, risk management, legal and compliance, as well as slimming the back office in favour of locations overseas.
Morgan Stanley could initially shift 300 staff from Britain after its EU exit and is scouting for office space in Frankfurt and Dublin, Bloomberg News reported in February.
The bank plans to double the number of its bankers in Frankfurt to 400, Welt am Sonntag reported in June.
Japan's Mitsubishi UFJ Financial Group 8306.T is hiring staff in London in a drive to expand its investment banking operations across Europe, the Middle East and Africa (EMEA) and boost income outside its home market.
Japan's Mizuho Financial Group 8411.T said it would set up a subsidiary in Frankfurt, the latest Japanese bank to choose the German city as its new base in the European Union as Britain prepares to leave the bloc.
MITSUBISHI UFJ FINANCIAL GROUP
Japan's Mitsubishi UFJ Financial Group Inc 8306.T said it has picked Amsterdam as its EU investment banking base.
Nomura Holdings Inc 8604.T is applying for a licence to operate a new entity in Frankfurt.
Asset management company Northern Trust has said it will set up an EU banking base in Luxembourg.
Around a third of Northern Trust’s institutional clients have asked it to ringfence British exposure from their broader European portfolios to protect them from Brexit-related risks.
Royal Bank of Scotland RBS.L said it may move up to around 150 jobs to Amsterdam after Brexit.
RBS also said it was in talks with the Dutch central bank to use a licence it has in the Netherlands to conduct some Natwest Markets business there if it becomes necessary.
RBS Chief Executive Ross McEwan said the bank will enact its Brexit plans by the end of March 2018 if no clarity emerges about Britain’s ability to retain access to the single market.
Societe Generale SOGN.PA will wait for more clarity on Brexit before deciding whether to move staff away from London, CEO Frederic Oudea has said.
Oudea had previous said the bank could move 400 corporate and investment banking jobs from London, with most going to Paris.
SocGen said it would apply for a third-country branch licence with the UK financial regulator by early next year.
Standard Chartered will need to spend around $20 million making Frankfurt its European base in order to secure market access to the European Union when Britain leaves the bloc, Chief Executive Bill Winters told Reuters.
SUMITOMO MITSUI FINANCIAL
Sumitomo Mitsui Financial Group Inc 8316.T said its core banking unit, Sumitomo Mitsui Banking Corp has decided to set up a subsidiary in Frankfurt.
TD Securities, the investment banking arm of Toronto-Dominion Bank Group TD.TO, said it would expand operations in Dublin to bolster its European business in response to uncertainty triggered by Brexit.
UBS UBSG.S is weighing up whether to move banking jobs in London to Frankfurt, Madrid or Amsterdam to cope with Britain's planned EU departure, Chief Executive Sergio Ermotti said.
The bank has estimated that it would need to “move 1,500 people” from London to the EU to retain full passporting rights, according to Chairman Axel Weber. That would be more than a quarter of its 5,500 staff in London. [nL5N1F81JN
The world’s biggest wealth manager has also set up a bank in Frankfurt to consolidate most of its European wealth management operations.
The bank plans to tell UK staff “in the next few weeks” where it will move jobs to prepare for Britain’s departure from the EU, Ermotti said on Oct. 27.
Compiled by Noor Zainab Hussain and Esha Vaish in Bengaluru; editing by Jason Neely
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