American investment bank Citigroup is set to expand their operations in the Financial Centre Frankfurt as a result of the UK’s withdrawal from the EU. Initial reports indicate the investment bank will relocate several hundred sales and trading jobs to Frankfurt.
Frankfurt Main Finance (FMF) welcomes the news and is proud that Citigroup, one of the so called big five, has chosen to expand operations in the Financial Centre Frankfurt. Commenting on the news, FMF Managing Director Hubertus Väth said, “It is great news for the Financial Centre Frankfurt and we look forward to welcoming our new colleagues. Citi’s decision supports our estimates of an additional 1,000 jobs moving to the Financial Centre Frankfurt this year and 10,000 jobs coming in the next five years. The reported decision by Citi also reaffirms our confidence that at least twelve banks and perhaps as many as twenty will decide for Frankfurt this year.”
For the past year, the Financial Centre Frankfurt has been in concrete discussions with nearly twenty banks interested in moving operations to Frankfurt. “Last week, Jamie Dimon announced in Paris that JP Morgan will use Frankfurt as their legal base. This was a strong, first signal from the US banks. Following last week’s submissions to the Bank of England, we expect to see the next wave of announcements coming very soon,” Väth explains.
The Financial Centre Frankfurt is in the pole position to win banking business from London following the results of the UK’s referendum. Noted for its strong economic and political stability, Frankfurt and the region offer a top infrastructure, competitively priced and plentiful modern office space, a deep talent pool and an extremely high quality of life. Financial services moving to Frankfurt will find a competent, helpful and welcoming regulator in BaFin, who will accept large portions of applications in English. The Financial Centre is already home to more than 150 foreign banks and 75,000 people employed in financial services.