Citigroup confirms plans for expansion in Germany

CITIGROUP bankers have been officially notified of the lender’s plans to bolster its Frankfurt office as part of Brexit contingency plans.

The bulked-up Frankfurt office — which currently houses 350 staff — will become a broker-dealer entity, allowing the US bank to continue serving EU cli- ents after the UK leaves the bloc.

An internal memo sent to staff said Citi is expecting to ramp up a number of divisions including private banking, corporate and investment banking and capital markets by increasing its footprint in other EU financial hubs including Amsterdam, Dublin, Luxembourg, Madrid and Paris.

It has said its Belfast operations will not be affected.

Citi’s Europe, Middle East and Africa (EMEA) boss James Cowles told staff that while it is “not yet possible to assess the outcome or timing” of Brexit negotiations, the US lender was likely to increase its EU headcount.

“In certain circumstances we may need to create approximately 150 new roles located in the EU,” Mr Cowles said, according to the internal memo.

“In all cases, London will remain both our EMEA headquarters and an important global hub for Citi,” he added.

Citi employs around 9,000 staff in the UK, 6,000 of whom are based in the City of London.

“I believe this is a prudent step to ensure that we will be able to continue to serve our clients throughout the EU from March 2019, regardless of the outcome of the Brexit negotiations,” Mr Cowles said.

Meanwhile, Deutsche Bank’s chief executive has warned UK staff that roles may be shifted to Frankfurt as it prepares for a Brexit outcome that is “worse than people can imagine”.

John Cryan delivered the message in a video posted on the company’s intranet on July 11, adding that the German bank was likely to book the “vast majority” of its assets out of Frankfurt — where its headquarters are based — after Brexit.