As part of its efforts to move jobs out of London post Brexit, JPMorgan Chase & Co. (JPM - Free Report) is buying an office space in Dublin. This move confirms confidence in the Irish capital at a time when various cities of the European Union are competing to convince financial institutions with large bases in the U.K. to choose them over others to carry out activities previously performed in London.
The new building, located in the Capital Dock development in Dublin, covers 130,000 square foot and its construction is expected to be completed by the end of 2018. The premise is being purchased from Kennedy Wilson, a real estate firm, Toronto-based Fairfax Financial Holdings Ltd. and Ireland’s National Asset Management Agency.
The building will be able to accommodate around 1,000 staff, which is double the number of people already employed by JPMorgan in Dublin.
Carin Bryans, senior country officer for JPMorgan in Ireland, said in a statement, “Given the momentum of our local businesses, this new building gives us room to grow and some flexibility within the European Union.” He added, “Dublin has the vibrant business and technology communities that suit a global firm like ours.”
JPMorgan has plans of moving its custody business to Dublin and hire a significant number of people there. However, it also plans to shift its investment banking business to Frankfurt and treasury services to Luxembourg post Brexit.
Eoghan Murphy, Ireland's financial services minister, said in a statement that this decision by JPMorgan was "a welcome vote of confidence in the strength of Ireland's offering and Dublin's status as a major financial center."
Apart from JPMorgan, some other financial services firms which are planning to move jobs out of London are The Goldman Sachs Group, Inc. (GS - Free Report) , Deutsche Bank AG (DB - Free Report) and Barclays PLC (BCS - Free Report) .
Shares of JPMorgan gained 41.6% in the last one year, outperforming the 35.6% growth for the Zacks categorized Banks - Major Regional industry.
Currently, JPMorgan carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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