JP Morgan leads $283 bn Brexit shift to Frankfurt

The major US investment banks are planning to shift about 250 billion euros ($283 billion) of balance sheet assets to Frankfurt because of Brexit, several people briefed on the matter said.

Goldman Sachs Group Inc, JP Morgan Chase & Co, Morgan Stanley and Citigroup Inc have presented plans to increase the assets held through their Frankfurt subsidiaries tenfold after the UK’s exit from the EU to comply with requirements, the people said. They asked not to be identified discussing private information.

The post-Brexit estimates below are according to people familiar with the matter and figures for 2017 are from the annual reports of the bank’s German subsidiaries; all figures are in billion of euros.


The final size of the assets, including a large chunk of derivatives contracts with EU clients, may change depending on the outcome of Brexit talks, the people said. Any shift will likely be very sizable unless banks can keep their EU passporting rights, they said.

Representatives for JP Morgan, Goldman, Citi and Morgan Stanley declined to comment.

Many banks are finalising Brexit planning with only a few more months before Britain’s planned divorce from the EU and uncertainty about key aspects of the final agreement. They need approval for their plans from regulators, who have recently indicated they want to see more risk management functions based in the EU after Brexit.