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MUFG Considers Relocating Base to Amsterdam Post Brexit


Mitsubishi UFJ Financial Group Inc. MTU is mulling over shifting its investment banking base from London to Amsterdam, inside the European Union (EU), post Brexit. It is also considering opening an investment banking branch in Paris.

Post Brexit, Britain is likely to lose the “passporting rights,” which compels international banks to open branches and conduct business easily in any part of the European territory after the initial process of registration is over. Hence, MUFG’s securities division has decided to submit an application for a license to set up a subsidiary in Amsterdam ensuring that they can carry on providing services to its existing EU clients.

Investment banking head office in London will continue to be the headquarters for Europe, the Middle East and Africa, per sources familiar with the matter. The bank has close to 2,000 employees in its London office out of which a few people will be relocated to either the Amsterdam or Paris branch.

Despite elevated expenses, negative interest rates in Japan, uncertain global economy and a stringent regulatory landscape, this Japanese investment banking firm has been consistently growing through acquisitions on the back of its strong liquidity position. Further, it remains focused on its medium-term business plan (2016-2018), which includes upgradation and reformation of its business model and exploration of new business areas.

All the major banks are looking at options to shift their base inside the EU since the announcement of Brexit. Banks like Standard Chartered SCBFF, Morgan Stanley MS and Nomura Holdings NMR have chosen Frankfurt as the next financial hub inside the EU.

Shares of MUFG have gained 26.6% over the last 12 months compared with the industry’s gain of 27.3%.

Currently, the bank carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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