U.S.-based Citigroup Inc. will set up a new bank in London to house its U.K. consumer business after Britain leaves the European Union, Reuters reported, citing a note by Citi to customers.
The consumer business, previously run through Ireland-based Citibank Europe PLC, will be transferred to the new bank by March 2019, subject to regulatory and court approvals.
All of Citi's British consumer accounts, investments and services would also be shifted to the new bank. However, it is unclear whether the new entity will have to be separately capitalized, according to the Oct. 5 report.
"The creation of Citibank UK Ltd. will enable us to continue to service our Citigold and other U.K. consumer clients in the full range of post-Brexit legal and regulatory scenarios," a Citi spokeswoman reportedly said.
Citi, which has picked Frankfurt as the base for its post-Brexit EU trading business, will also expand its operations in Paris and establish a new booking center in Luxembourg to support its private bank.