Credit Suisse is planning to relocate approximately 50 to Madrid, 50 investment bankers to Germany, and a maximum of 150 more to other European Union hubs that will include Luxembourg in case of a hard exit by the United Kingdom from the bloc. The information was disclosed by sources close to the matter.
Credit Suisse is the second-biggest bank in Switzerland. It has so far refused to disclose a figure on the number of bankers that it is planning to relocate out of London from its employees in the City of approximately 5,500. It says that discussions are still continuing. However, it has identified Madrid, Luxembourg, and Frankfurt as its post-Brexit hubs.
On Thursday, a spokesperson for the bank stated: “Credit Suisse is working to maintain access to EU clients and markets by leveraging our existing infrastructure in the event of a Hard Brexit.” He was referring to a disorderly or no-deal exit.
He added: “Discussions with relevant regulators, employees and key stakeholders remain ongoing, but our solution will involve multiple locations, including Madrid, Frankfurt and Luxembourg.”
This week, Credit Suisse also revealed its plans to increase investment banking assets in Frankfurt.
In Credit Suisse’s quarterly report it said that after “planning relating to the withdrawal of the UK from the EU,” the bank had approved transferring approximately $200 million (£153.14 million) worth of assets to its capital markets and investment banking division in Germany.
With an October crunch point in the discussions regarding the future trading relationship between the United Kingdom and the European Union, the banks are pushing ahead with expanding or opening hubs in the European Union in order to avoid disruption to customer services once the United Kingdom withdraws from the bloc next March without a transition deal.
This week, a source disclosed that the Swiss bank is currently in the process of informing their employees who are based in London regarding the moves that will affect its main divisions, such as the wealth management, asset management, and investment banking division.
It said that London will continue to be a significant part of the footprint of the bank even after Brexit.