Sumitomo Mitsui mulls jobs move after picking Frankfurt for new EU base

Oliver Gill
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Sumitomo Mitsui employs 1,000 staff in London (Source: Getty)

Sumitomo Mitsui, Japan's third largest lender, has picked Frankfurt as its new EU base, according to a reports.

In preparation for Brexit, the bank will move its European headquarters from London to the German banking city in order to sell products and services to other EU countries, Nikkei business daily reported.

The decision mirrors the selection of Japan's two largest brokerage firms, Nomura and Daiwa Securities.

Sumitomo Mitsui employs 1,000 staff in London and the reports indicated some of the lender's staff would move from the City to Frankfurt once the base had been set up.

Read more: Japanese banks to shift London resources to Frankfurt after Brexit

Banks and other City institutions are busy preparing for the UK's split from the EU.

An exit from the single market would likely mean financial services firms will lose so-called passporting rights to trade with other EU countries. Setting up an EU base outside of the UK is therefore a popular strategy many firms are undertaking.

Insurers were quick to announce their plans, with Lloyd's of London's historic corporation picking Brussels as its EU base just hours after Prime Minister Theresa May triggered Article 50, the process to leave the EU.

Many banks are leaning towards Germany, but Luxembourg and Dublin have been a popular choice of EU base for asset managers and insurance firms.

Read more: Lloyd's of London to confirm its new EU location next Wednesday

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