Deutsche Bank’s Brexit plans risk jobs

Bloomberg

Deutsche Bank AG envisions shifting almost half its UK positions to the European continent over coming years as the lender’s Brexit plans take shape, people briefed on the matter said.
Most of the 4,000 positions will move to Frankfurt and Berlin under the bank’s base case scenario, the people said, asking not to be identified discussing
internal planning. Deutsche Bank will start relocating jobs next
year at the earliest once it has dealt with regulatory approvals and other preparations, another person said.
No plans have been finalised and numbers could still change
depending on the UK’s talks
with the European Union, the
people said.
Banks, concerned by the lack of progress in Brexit talks and the potential for London to be shut out of the single market, are activating contingency plans and establishing hubs on the continent.
Frankfurt and Dublin are getting the lion’s share of relocated banking jobs, with Germany’s financial center also set to attract banks including Citigroup Inc. and Standard Chartered Plc.
An official for Deutsche Bank declined to comment.
Chief Regulatory Officer Sylvie Matherat had indicated in April that 4,000 jobs could be the maximum number at stake in the
UK post Brexit, especially front-office staff dealing with EU clients and associated risk managers.
The Frankfurt-based bank has about 7,000 people in London and approximately 8,500 across the UK, according to last year’s
annual report.
Already Preparing
The bank is already preparing to move large parts of the trading and investment-banking assets its currently books in London to Frankfurt as part of its response to Brexit, with people familiar with the matter saying last month the lender will probably move about 300 billion euros ($354 billion) of balance sheet assets out of the
UK capital.
Chief Executive Officer John Cryan told Bloomberg TV last week that “we genuinely don’t” know what the impact of Brexit will be on the lender’s presence in London. In many cases, Germany’s biggest bank would likely move jobs rather than employees, the people said.
In a sign that it’s not entirely turning its back on London, Deutsche Bank signed an agreement with Land Securities Group to move its UK headquarters to a building being constructed at 21 Moorfields in the City of London financial district, according to a filing on Tuesday. The lender will lease at least 469,000 square feet (43,570 square meters) for 25 years if planning approval
is secured.
Matherat, speaking at a conference in Frankfurt, said that about 2,000 jobs would be affected if all of the bank’s client-facing staff had to move, and an 2,000 could be at risk in associated functions.