Citigroup is set to transfer the consumer operations of the company in the United Kingdom into a new UK bank. It will be headquartered in London in time for Brexit, the exit of the country from the European Union.
A note that was sent out to its customers yesterday revealed the said move. The note mentioned that the bank said that its UK business, that was previously managed via Citibank Europe in Ireland, will be relocated by March 2019. It also said that the move was subject to the approval of the regulators.
As an outcome, all consumer accounts, services and investments that are based in the United Kingdom will be transferred to the new bank. However, it was not immediately clear whether the new bank would require to be capitalized separately.
In an interview with Reuters, a spokesperson for Citi stated: “The creation of Citibank UK Limited will enable us to continue to service our Citigold and other UK consumer clients in the full range of post-Brexit legal and regulatory scenarios.”
The news was revealed after some executives from Citi, alongside JP Morgan and Barclays, informed MPs last September that they expect that only 150 of its 9,000 jobs will be moved out of London after Brexit, instead of the thousands that were initially forecasted.
James Bardrick, the head of Citi UK stated: “The numbers we’re giving and the plans we’ve made are for the worst case. When we say 150, 200 people, that’s our worst case.”
He added: “Our London operation is a very, very important part of our global organisation.”
The bank is also expanding its operations in Frankfurt, as it will relocate its EU trading business there after Brexit.
Citi’s decision is the most recent example of measures that global banks have had to exercise in order to reorganize their operations around the departure of the United Kingdom from the European Union that is scheduled to take place in March 2019.