HSBC's Stuart Gulliver Estimates 20% Brexit Revenue Exodus from London

Speaking at the World Economic Forum in Davos on Wednesday (18 January 2017), HSBC chief executive Stuart Gulliver said trading operations that account for a fifth of revenues at the United Kingdom investment bank are likely to move.

Gulliver added that the global lender "has a fully operating banking subsidiarity in France". "And so for us, it's France".

Banks are anxious that once Britain quits the EU, they will lose the right to do business in European jurisdictions. This is possible if the government agree to a transitional arrangement where banks can continue to operate out of Britain and across the European Union after Brexit, in the hope that a favourable access deal is achieved in the interim.

London's financial firms have been waiting to discover whether the United Kingdom can hold on to passporting rights which allow them to trade freely across Europe after Brexit.

The talks will take place in Davos, where leaders are gathering for the World Economic Forum's annual meeting in Switzerland.

The bank's Chief Executive Stuart Gulliver told Reuters that the firm will move staff in about two years when Brexit "becomes effective" in a potentially damaging first blow to London's status as Europe's main financial center. That provides a crucial gateway for companies to access the rest of the bloc.

The British Bankers' Association cautioned previous year that worldwide lenders with operations in the United Kingdom were ready to transfer some of their activities out of the country from early 2017 because of the pro-Brexit vote.

Related:

Comments


Other news