Banks could reveal more Brexit details in the next few weeks, but don’t expect them to spill everything
Banks could release some more details on what they plan to do post-Brexit within the next few weeks, as they prepare to announce their full-year results.
Many across the City have been concerned about what the final Brexit deal will have in store for them, and how financial institutions are going to react. In particular, there are worries the final departure deal will contain insufficient access to EU markets and that a transition period, which will allow firms to hold onto valuable rights for long enough to get their final plans in order, will not be secured.
Andrew Gray, global financial services Brexit leader at accountancy giant PwC, told City PM that banks were likely to say something on their Brexit plans when they released their full year results in the next few weeks, adding: "Institutions will need to explain how they will address the risk they will face from Brexit."
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However, lenders are unlikely to spill all the details. Gray noted banks "will be cautious" in how they articulate their contingency plans, given the high level of uncertainty still surrounding the Brexit negotiations.
"Firms at the moment are still looking at how to improve their options," he added. "They will be looking at what investments they need to make in terms of people, technology and operations."
A City source also told to City PM banks were likely to "err on the side of caution but certainly there will be a push [to reveal some of their planning] from shareholders" and that the majority of banks were keen to stay in London as far as possible.
Another City source noted, although there would likely be "some kind of reference to Brexit" in the next round of results, a big announcement would be a "little bit premature", adding: "The banks are still in the process of developing their Brexit plans."