Barclays has continued the trend of major UK institutions moving their operations to Dublin post-Brexit. The company is set to move its mainland European operations to the Irish capital over the coming months.
This move will set Barclays as the biggest bank in Ireland in terms of assets. Its UK and European operations have been valued at close to €190 billion by accounting firm EY.
The evaluations of these operations have come about from the accounting firm EY. They have used a process of mutual benefit in estimating the value of operations in different countries in comparison to Ireland.
A spokesperson for EY said “The basis of the value for the consideration is ‘market value’ – the price that would be paid in a transaction between a willing vendor to a willing purchaser, each of whom is acting for self-interest and gain, and both of whom are equally well-informed about the companies and the market in which they operate,” noted EY in relation to the valuation placed on the French business”
Some of the operations being moved from other European countries include Credit card and corporate investment from Germany and legacy mortgages from Italy.
Barclays has followed a similar line to many other businesses in the UK in recent months. They have made efforts to push through legal frameworks which will allow them to continue operations in the EU, other notable companies include Aviva and Standard life.
The high court judge presiding over the legal changes criticised the aggressiveness of the changes. Highlighting some of the desperation reflected by the uncertainty of Brexit.
TheMr justice Richard Snowden said, “This was a significant, complex, and in certain legal respects, a novel scheme,”.
He added: “It could not at any point in the design process have been thought that the court would simply wave the scheme through without having time for consideration.” Although the grievances
The bank is expected to double its number of staff in Dublin to 300 by the end of the year. This will include the hiring of new staff and the
Dublin remains popular choice
Another survey conducted by EY shows that Dublin remains the most popular choice for financial service firms post-Brexit.
The survey noted that while London is and will remain a financial center for long period of time there have been notable moves by some of the largest institution in the UK.
Cormac Kelly, Financial Services Brexit Lead for EY in Ireland, noted that the major reason for companies wishing to move was the uncertainty surrounding Brexit. He
“We are seeing this first-hand with the arrival of these firms who are taking new office space and recruiting talent as well as seconding experts from their worldwide offices into high value, skilled roles in Dublin,” Mr Kelly said.
Companies that have announced Irish investments connected to Brexit include Barclays, Morgan Stanley, TD Securities, Wasdell, Delphi /Aptiv, Simmons & Simmons, S&P Global, Thomson Reuters, Equilend and Coinbase, the IDA said.
EY estimates that almost 7000 jobs could be in jeopardy in London’s financial sector. Omar Ali, financial services head in EY said: “The relocation of 7,000 high-paid finance jobs will inevitably hit the UK tax base,”. “Even using a conservative estimate . . . the direct loss to the Exchequer from employment taxes would be around £600m. In reality, the average salary and therefore tax loss is likely to be much higher.” recorded the
With so much uncertainty we are going to see an increasing number of firms move away from the UK. The uncertainty of new policies and the political stalemate will do nothing to soften some of the moves an positions of these companies in recent months.
Hopefully for Dublin at least this trends continues and Dublin will grow as a financial center to rival its other European counterparts.