JPMorgan to grow its German hub
Frankfurt — JPMorgan Chase & Co is further expanding its balance sheet in Frankfurt as it adapts to a post-Brexit Europe.
The US bank expects to add a similar amount to its European hub in 2021 as it did in 2020, according to its annual report for JPMorgan Germany. The unit increased by about €180bn ($216bn) to €244bn in 2020, the document said, confirming an earlier Bloomberg report.
JPMorgan has led its Wall Street peers in shifting assets out of London as the UK exited the EU. It has repeatedly said it expects its EU unit to gain market share in areas including trading, investment banking and commercial banking.
“We plan to complete the Brexit programme by the end of 2021,” JPMorgan said in the report. “Together with the expansion of our existing business activities, we expect that the size of our balance sheet this year could increase similarly to the previous year.”
London’s future as a financial centre has been in the spotlight after Brexit came into effect at the start of the year. Trading in European shares quickly moved away from the British capital while hopes for unhindered access to EU markets — via a process known as equivalence — have long gone.
The full long-term impact is still unclear. JPMorgan CEO Jamie Dimon, a long-time critic of Brexit, warned this year he could ultimately shift all bankers serving EU clients out of London.
Other banks to beef up in Germany’s financial hub include Goldman Sachs, Citigroup, UBS and Standard Chartered. A report by consultancy EY has estimated that about £900bn ($1.2-trillion) of assets have also shifted to the EU from the UK, along with about 7,500 employees.
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