Lloyds Banking Group has reportedly chosen the German capital as the location for its European hub after the UK
leaves the EU.
According to several media reports, the bank has decided to convert its Berlin branch into an official subsidiary of
the main company, to enable the lender to continue to be able to provide clients with all its services after the split.
The Telegraph reported that Lloyds hopes to submit an application to German financial regulator BaFin to change
the status of the Berlin branch by the end of September.
Lloyds Bank close to choosing Berlin as European base after Brexit The bank considered several cities for the
location of its EU base, including Amsterdam and Dublin, but Berlin proved the most appropriate because it is
already home to Lloyds’ biggest European operations, employing around 300 staff, according to the paper.
Major financial institutions, insurers and asset management companies with significant operations in the UK
have for months been weighing up the impact that Brexit might have on their business and assessing how
they might have to change their set-ups to continue to cater to clients’ needs.
Lloyds has almost all of its assets in Britain and is also the only major British retail lender without a subsidiary in
another EU country, according to Reuters.
Last month insurance market Lloyd’s of London confirmed that it would be setting up a new insurance
company in Brussels, to secure a European foothold after Brexit. Inga Beale, its chief executive, at the time
said that the intention is for the company to be ready to operate on 1 January 2019.
Also in March, Goldman Sachs’ Europe chief executive, Richard Gnodde, said that the US bank would
relocate hundreds of staff out of London before any Brexit deal is struck as part of its contingency plans for
the UK leaving the EU. The company employs around 6,000 people in London. The chief executive of
the London Stock Exchange, Xavier Rolet, warned earlier this year that Brexit poses a risk to the global financial
system and could cost the City of London up to 230,000 jobs if the Government fails to provide a clear plan for post-
While Lloyds is mainly focused on the UK, it does have some businesses in Europe that it needs to protect its access
to after Brexit, including a Dutch mortgage operation and German savings accounts.
London is the hub for European finance and most international banks and asset management firms have
the headquarters of their EU operations in the British capital. However, with the UK due to leave the EU’s single
market, financial firms will be forced to set up new bases on the Continent and potentially move thousands of jobs
out of the country, to ensure they can continue to serve their European clients.