Back to top

Image: Bigstock

JPMorgan to Move Assets to Germany Amid Britain's Exit From EU

Read MoreHide Full Article

As Britain exits the European Union (“EU”), JPMorgan (JPM - Free Report) plans on shifting 200 billion euros ($230 billion) of assets from the U.K. to Germany. The news was first reported by Bloomberg, citing people with knowledge of the matter.

Britain has exited the EU and the transition period will end in December. Hence, JPMorgan wants to complete the migration of its assets to the Frankfurt-based subsidiary before December-end.

The assets that will be migrated represent marginally less than 10% of the company’s total balance sheet.

Before Brexit, London was the financial hub for most of the companies operating within the EU.

However, now, companies with operations in London will lose their “passporting rights”, which allowed them to provide services to other member countries of the EU from London.

In fact, the EU’s banking watchdog said in July that banks that have been using Britain as a doorway to the EU now have to fully execute their plans for serving customers within the EU before the transition period ends. This is because financial companies from the EU will now need authorization to operate in Britain as a branch or subsidiary.

As banks prepare to relocate jobs out of London, JPMorgan last week asked nearly 200 of its London staff to shift to other European cities like Paris, Milan and Madrid.

Also, last year, Barclays PLC (BCS - Free Report) said that it would move its Europe headquarters to Dublin.

Companies like Citigroup (C - Free Report) and UBS Group AG (UBS - Free Report) are also trying to increase operations in Germany’s financial hub.

Notably, JPMorgan’s move to shift assets to Germany is not just a result of Brexit alone. The Wall Street giant believes that its unit in Germany will seek market share in investment banking, corporate banking and wealth management.

Shares of JPMorgan have gained 1.1% over the past six months compared with the industry’s rally of 4.7%.






Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


JPMorgan Chase Co. (JPM) - free report >>

Citigroup Inc. (C) - free report >>

UBS Group AG (UBS) - free report >>

Barclays PLC (BCS) - free report >>