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Frankfurt is leading city for banks moving ahead of Brexit

October 1st 2018

By Financial Time

Frankfurt is leading the pack among European financial hubs in wooing London-based banks on the eve of Brexit, extending its headway over Paris according to data published on Monday.

Over the last twelve months, 10 foreign banks have chosen to move operations and staff from London to Frankfurt, lifting the city’s total tally of “Brexit banks” to 25, according to a new survey by state-owned Frankfurt-based lender Helaba. Among the lenders are Goldman Sachs, Citi, JPMorgan and Barclays.

The French capital attracted seven banks over the period, lifting the total number of foreign lenders that have moved to Paris to eight, while Luxemburg, Dublin and Amsterdam attracted 15 lenders between them.

“Frankfurt is the first choice for Brexit banks,” said Gertrud Traud, chief economist of Helaba. According to Helaba, some Asian banks are also in confidential talks about moving operations to Frankfurt.

Among Frankfurt’s attractions are its proximity to Europe’s most important financial institution, the European Central Bank, as well as Germany’s strong economy and the city’s relatively low property prices, according to Helaba.

By 2020, the number of staff employed by foreign banks affected by Brexit in Frankfurt is expected to rise by 2,000 to around 4,500.Longer term, Helaba has predicted this number will rise to around 8,000 jobs in total. However, as German banks are simultaneously cutting jobs, the net effect is likely to be around 2,000 additional jobs, Helaba expects.