Deutsche Bank May Take $350 Billion Out of London Post-Brexit

Paterniano Del Favero
Luglio 25, 2017

Deutsche Bank is considering shifting €300bn (£270bn) from the balance sheet of its United Kingdom entity to Frankfurt on the back of Brexit, representing nearly a fifth of its total assets.

If Deutsche Bank's plan goes into place, trading of those $350 billion assets is expected to start September 2018, with all assets moved over by March 2019. This is almost a fifth of Deutsche Bank's balance sheet, 1.59 trillion euros as of a year ago.

Deutsche Bank declined to comment but didn't explicitly rule out the move.

While the specifics of Brexit have not yet been decided, Deutsche Bank says it would prefer to be prepared rather than not, Cryan said in a video message earlier this month. People familiar with the matter told Bloomberg that the lender intends to move chunks of trading and investment-banking assets from London to Frankfurt, with the jobs of several hundred traders and as many as 20,000 client accounts likely to be shifted.

"There's an very bad lot of detail to be ironed out", he said in the message. It wants to have built front-to-back technology and processes by June 2018, according to the person.

Much of Deutsche Bank's trading in Europe is traditionally booked in London, which gained a prominent role for the bank under Cryan's predecessors Anshu Jain and Josef Ackermann. Now, the Brexit-triggered shift fits with his plan to highlight corporate business in the bank's home field.

The moving plans are overseen by Deutsche Bank's two co-heads Marcus Schenck in Frankfurt and Garth Ritchie in London, and by Sylvie Matherat, the executive board member in charge of the compliance division.

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