22 October 2015•Update: 27 October 2015
By Andrew Jay Rosenbaum
ANKARA
British banks are fleeing the City of London as they move operations to the provinces, according to a British Banking Association (BBA) report released Thursday.
A need to cut costs and shore up capital reserves is behind the move, as profits are down at most major British financial institutions, according to the report.
At Barclays, first quarter pretax profit was down 5 percent, the bank announced in June. HSBC saw a small 2 percent increase for the same period after the bank announced staff cuts of 50,000 in June. The Royal Bank of Scotland reported a loss of £446 million ($668 million) for the first quarter of 2015.
The report shows the overall number of banking jobs fell by nearly 2,400, or 0.5 percent, in 2014. Since 2011, the number of banking jobs has declined by 3 percent, the report said.
With fewer jobs, cheaper office rent makes a big difference for banks. Credit Suisse Chief Executive Tidjane Thiam said Wednesday he estimated the bank could save the equivalent of $241 million a year by moving some roles out of London.
