Last year Deutsche Bank chief executive John Cryan said the Brexit outcome would be: “worse than people can imagine.”
And it was suggested the bank would relocate thousands of staff from London to the continent.
But todat Stefan Hoops, head of Deutsche’s capital market division in Germany, said that is no longer the case.
He said: “Not thousands will move from London, but rather hundreds.”
Originally it was proposed that 4,000 staff would be moved from London to Frankfurt.
Despite the banks headquarters being located in Frankfurt, 8,600 staff are based in Britain.
Mr Hoops also said that a few senior traders would relocate to Frankfurt as risk managers and legal staff.
He said: “The lion’s share of traders will remain in London.”
Last week, Mr Cryan told a Newspaper that initially several hundred jobs would be created in Frankfurt, as well as in other cities such as Milan and Paris.
“Mainly bankers, technology experts and traders work in London and they want to stay there,” Cryan was quoted by Neue Zuercher Zeitung as saying. “The booking centre will move for sure, but that affects less jobs than many think.”
Deutsche Bank is planning a new booking centre in Frankfurt to handle the billions of euros of non-European Business routed through London, which may not be allowed after Brexit.
As a result of this, the transactions of Deutsche’s 20,000 institutional securities trading clients will be logged through Frankfurt, Deutsche’s Hoops said. “That will start in coming weeks.”
A few senior traders will relocate to Frankfurt from London, as well as risk managers, legal staff and support functions, Hoops said. “But the lion’s share of traders will remain in London.”
Traders will mainly keep handling orders in London, but the actual booking of the trades will then be executed in Frankfurt.
Competition for highly qualified staff, especially in risk managing and legal functions, will be fierce as other banks also relocate some operations to Frankfurt from London, Hoops said.
Up to 400 IT staff have started migrating 100 different trading systems, which had so far not been installed in Frankfurt, Hoops added.
It comes after Sergio Ermotti, the head of Swiss bank UBS said last October that the chances of having to move over 1,000 jobs out of London due to Brexit is looking “more and more unlikely.”
Following Ermotti’s comments HSBC announced that the movement of staff from London to Paris may be less than the 1,000 that was previously anticipated.
Jeremy Browne, the City’s EU envoy said in early January: “It may end up for quite a lot of them being a bit less dramatic than it might appear.”
Lord O’Neill of Gatley former trade minister and Goldman Sachs economist has down played the concern that Wall Street banks may poach financial workers from London.
He said investment banks will not: “go rushing to move a lot of people at first.”
Source : EXPRESS