Standard Chartered share price inches up as it settles on Frankfurt for post-Brexit EU subsidiary

Caitlin Morrison
Follow Caitlin
Shares Of Standard Chartered Bank Fall After Allegations Made Over Involvement In Iranian Money Laundering
Standard Chartered is looking at moving some business to Frankfurt (Source: Getty)

Standard Chartered has chosen Frankfurt as the favoured location for its European headquarters after the UK leaves the EU.

Shares in StanChart were up 0.7 per cent in afternoon trading.

The bank is in talks with regulators about setting up a subsidiary in the German city after Brexit.

"We are looking at setting up a subsidiary in the EU to ensure we are prepared," StanChart chairman Jose Vinals said today at the annual shareholder meeting in London.

"The choice of Frankfurt is very natural as we have a branch there and we do euro clearing there."

Vinals also told investors Standard Chartered is unlikely to see a material impact from Brexit. Ratings agency Moody's yesterday downgraded the Asia-focused lender citing profitability problems.

Frankfurt is one of the European locations likely to see lot of bankers streaming in from the UK because of Brexit, after the city made a huge lobbying push to attract British business after last year's referendum. As early as last November, a senior German finance ministry official, Thomas Steffen, said the city was seeing an increasing number of requests about potential moves.

And StanChart would not be alone in moving business to Germany - this morning JP Morgan confirmed that it will move hundreds of employees from London to Dublin, Luxembourg and Frankfurt, and recently Deutsche Bank revealed it was considering relocating up to 4,000 members of staff.

Meanwhile, German rail operator Deutsche Bahn recently outlined proposals to run express trains from London to Frankfurt via the Channel Tunnel.

Related articles