Citi to set up a new UK bank post-Brexit

Citigroup is to transfer its UK consumer operations into a new UK bank, headquartered in London, in time for the country's exit from the European Union.

A note sent out to customers revealed the move yesterday, in which the bank said its UK business, previously managed via Citibank Europe in Ireland, will be moved by March 2019, subject to regulatory approval.

As a result, all UK-based consumer accounts, services and investments will be transferred to the new bank.

"The creation of Citibank UK Limited will enable us to continue to service our Citigold and other UK consumer clients in the full range of post-Brexit legal and regulatory scenarios," a Citi spokeswoman told Reuters.

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The news comes after executives from Citi, alongside Barclays and JP Morgan, told MPs last month that they expect just 150 of its 9,000 jobs to be moved out of London post-Brexit, rather than the thousands initially forecast.

"The numbers we're giving and the plans we've made are for the worst case. When we say 150, 200 people, that's our worst case," said Citi UK head James Bardrick.

"Our London operation is a very, very important part of our global organisation."

The bank is also strengthening operations in Frankfurt, as it will move its EU trading business there after Brexit.