Switzerland banking group Credit Suisse is looking to establish an investment bank hub in Madrid, Spain following the exit of the UK from the European Union (EU), and in this regard has applied for a licence.
As per Reuters, a spokesman of the bank has confirmed the news that was reported by a Spanish newspaper called Expansion.
In July, the Swiss banking firm applied for a licence from the Bank of Spain and also the European Central Bank for upgrading its brokerage in Spain to a bank as per the article in the Spanish publication, which quoted Wenceslao Bunge, who is Credit Suisse’s head of investment banking in Spain and Portugal.
In an interview with the Spanish newspaper, Bunge said that Credit Suisse will shift several of its European investment banking operations to Spain as part of its planning for Brexit. Bunge told the publication that the Madrid-based investment banking operations are expected to achieve full operations in mid-2021.
Bloomberg has quoted a bank spokesman to have emailed, as saying: “Credit Suisse’s priority has always been to ensure that we maintain access to European Union clients and markets regardless of the outcomes of the Brexit process.
“Over the last three years, we have added to our existing capabilities in Spain, Germany and Luxembourg to provide this continuity for our clients. London will remain a key part of the bank’s strategy and footprint after the U.K.’s exit from the EU.”
Credit Suisse undertaking a restructuring programme in Switzerland
Last month, Credit Suisse announced a restructuring programme in its home country Switzerland with a goal of saving nearly $109.92m per annum from 2022 onwards. As part of this, the bank will be closing 37 branches across the country while undertaking hundreds of job cuts besides merging its regional subsidiary Neue Aargauer Bank (NAB) with its main business.
Recently, the Swiss banking group posted a 24% increase in its net income attributable to shareholders for the second quarter of the year 2020 at $1.28bn, compared to $1bn made in the same quarter in 2019.
