In order to shift operations post Brexit, Citigroup Inc. C is applying for a French broker license, per James Cowles, Chief Executive Officer for Europe, the Middle East & Africa.
Previously, on Britain’s exit, the company had declared Frankfurt as its headquarter for trading operations in the European Union.It also disclosed plans to develop investment and private banking operations in the region.
Cowles said that Brexit would impact about 100 to 200 jobs. The positions would be transferred between one of its seven core locations across Europe, including Frankfurt, Paris, Milan and Luxembourg.
Banks have been long looking for a suitable location so that they can continue to serve their clients well. Frankfurt and Dublin have been topping the list and have attracted jobs from some of the largest banks.
Lately, France has also been emerging as another great option for these companies looking to base their operations, as the new government has promised to build up the labor market and simplify taxes.
Currently, Citigroup’s operations in Paris consist of investment banking activities like mergers and acquisitions along with capital market transactions. The CEO also said that the company will further expand presence in Paris.
Further, Bank of America BAC is also reportedly looking for office space in Paris to expand operations. Also, HSBC Holdings HSBC, Societe Generale SCGLY and Credit Agricole CRARY are planning to move staff to the city.
Citigroup continues to benefit from its diverse business model and focus on core operations. Also, its efforts to streamline international businesses and strategic investments will further support growth. However, the company continues to face several litigations, which are likely to hurt its financials.
Shares of Citigroup have gained 22.4% year to date, outperforming the industry’s rally of 9.9%.
.jpg)
Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 – Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 – Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment