Friday 23 February 2018

Latest Asian bank opts for Frankfurt over Dublin

The bank says it will set up a branch in London after the move. Photo: Bloomberg
The bank says it will set up a branch in London after the move. Photo: Bloomberg
Donal O'Donovan

Donal O'Donovan

Ireland has lost another Brexit-linked bank relocation, after Japan's Sumitomo Mitsui Financial opted to set up banking and securities units in Frankfurt to secure access to European Union markets once the UK leaves the bloc.

The Japanese bank chose Germany despite having a major Irish presence.

Japan's second-biggest bank said in a statement yesterday that it will be establishing new units in Germany in order to offer services "with no disruption" once Britain leaves the union.

However, the bank will set up a branch in London.

"While the UK is expected to continue playing a significant role in the global financial sector following its withdrawal from the EU, there is still uncertainty with regard to the expected results of negotiations between the UK and the EU," Sumitomo Mitsui said.

Home market rivals Nomura and Daiwahave have already chosen Frankfurt as their post-Brexit EU base.

Mitsubishi UFJ and Mizuho, Japan's two other mega-banks, are understood to have plumbed for Amsterdam.

Sumitomo Mitsui's decision to base its post-Brexit structure in Frankfurt will be seen as a particular blow, because of the bank's huge aircraft-leasing business here.

Dublin-based SMBC Aviation Capital had a fleet of 670 aircraft valued at $10.5bn (€9.3bn) during the 2016 financial year, according to the Irish unit's latest accounts.

Irish Independent

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