LONDON (Reuters) - HSBC could spend up to $300 million (228.72 million pounds) moving jobs and parts of its business to Paris following Britain’s exit from the European Union, Chief Executive Stuart Gulliver said on Monday.
The estimate, one of the most detailed yet by a major bank, includes the costs of relocating up to 1,000 jobs to the French capital as well as associated legal fees, Gulliver told reporters on a conference call.
“The $200-$300 million total is the cost of the transition to France,” Gulliver said after HSBC reported an increase in profits for the first half of the year.
HSBC said up to $1 billion in revenue could be at risk from Britain’s exit from the EU but it should be able to preserve the income by shifting associated jobs to Paris, Gulliver said.
Companies are spending tens of millions of dollars getting ready for Britain’s exit, with international banks establishing new subsidiaries in the bloc or developing existing ones.
That’s despite there being little clarity on how much business their UK outposts will be able to in the EU once Britain leaves in March 2019.
HSBC Chairman Douglas Flint said a meeting he attended between Brexit minister David Davis and British company executives this month showed signs of an improved relationship between the government and business over Brexit.
“The meeting was evidence of that, it was a well-designed meeting with the right people in the room, and each side interested in understanding each other,” Flint told Reuters on Monday.
Reporting by Lawrence White; editing by David Clarke