HSBC has re-affirmed its commitment to move its UK bank to Birmingham – as speculation grows over a return to the Midland Bank brand.
The banking giant has revealed it will consider moving its global headquarters out London this morning, in response to reforms for the UK finance industry.
This comes just days after it completed the move of its personal and business bank to Arena Central, shifting around 1,000 jobs from London to the second city by 2018.
A spokesperson for the bank confirmed today’s announcement would not affect that – indeed, it has signed a 250-year lease here.
Meanwhile, speculation is growing that that arm of the company will be re-named Midland Bank – which would likely be a popular move in the city.
Midland was set up on Union Street in 1836 before going on to become an international power.
Work on moving operations to Birmingham will begin imminently, with staff given the option to relocate to the city.
HSBC Bank chief executive Alan Keir told the Post last month: “The ethos was get banks back to financing the real economy – help people buy houses, get finance into businesses and help them start up. Another factor was that Birmingham was a leader in start-ups in the UK with 18,000 last year.
“Why wouldn’t we want to be where entrepreneurial Britain is strongest?”
HSBC chairman Douglas Flint revealed today HSBC is to consider moving its headquarters out of the UK.
Mr Flint said the banking giant was responding to “regulatory and structural reforms” in the industry in the wake of the financial crisis.
These include, in the UK, the need to separate its investment banking arm from the retail division serving ordinary customers and businesses.
Mr Flint said: “As part of the broader strategic review taking place, the board has therefore now asked management to commence work to look at where the best place is for HSBC to be headquartered in this new environment.
“The question is a complex one and it is too soon to say how long this will take or what the conclusion will be, but the work is under way.”
The HSBC spokesperson declined to comment on speculation over the Midland Bank brand.
