As Deutsche Bank AG’s Brexit plans take shape, people briefed on the matter wsere quoted in the media as saying that the lender envisions shifting almost half its U.K. positions to the European continent over coming years.
Under the bank’s base case scenario, most of the 4,000 positions will move to Frankfurt and Berlin, the sources reportedly said and asked not to be identified discussing internal planning.
One the bank has dealt with regulatory approvals and other preparations, Deutsche Bank will start relocating jobs next year at the earliest, sources reportedly said. the media however confirmed, quoting sources, that depending on the U.K.’s talks with the European Union, that plan and the numbers could still change because they have not been finalized as of yet.
Banks are activating contingency plans and are establishing hubs on the continent as they are concerned by the potential for London to be shut out of the single market and the lack of progress in Brexit talks. And with Germany’s financial center also set to attract banks including Citigroup Inc. and Standard Chartered Plc., Frankfurt and Dublin are getting the lion’s share of relocated banking jobs.
There were no comments made by the Deutsche Bank.
Especially front-office staff dealing with EU clients and associated risk managers, 4,000 jobs could be the maximum number at stake in the U.K. post Brexit, Chief Regulatory Officer Sylvie Matherat had indicated in April. According to its last year’s annual report, the Frankfurt-based bank has approximately 8,500 across the U.K. and has about 7,000 people in London alone.
The lender will probably move about 300 billion euros ($354 billion) of balance sheet assets out of the U.K. capital, people familiar with the matter said last month, sources have indicated that as part of its response to Brexit, the bank is already preparing to move large parts of the trading and investment-banking assets its currently books in London to Frankfurt.
“We genuinely don’t” know what the impact of Brexit will be on the lender’s presence in London, Chief Executive Officer John Cryan said in a television interview last week. The sources said that instead of employees Germany’s biggest bank would likely move jobs in many cases.
According to a filing on Tuesday, Deutsche Bank signed an agreement with Land Securities Group to move its U.K. headquarters to a building being constructed at 21 Moorfields in the City of London financial district which is being viewed as a sign that it’s not entirely turning its back on London. If planning approval is secured, the lender will lease at least 469,000 square feet (43,570 square meters) for 25 years.
In all of the bank’s client-facing staff had to move, about 2,000 jobs would be affected, in addition to 2,000 jobs which could be at risk in associated functions, Matherat, speaking at a conference in Frankfurt in April, had said at the time.
(Adapted from Bloomberg)