HSBC is planning to move its British retail and commercial banking business headquarters to Birmingham in central England.
The shift, which comes as part of its plan to split consumer banking from riskier trading businesses, will relocate about 1,000 jobs from its London headquarters.
The transfer to the new headquarters will begin in the middle of 2017 and will be completed by 1 January, 2019, ahead of the enforcement of ring-fencing rules requiring lenders to erect firebreaks.
HSBC is in advanced negotiations to conclude the acquisition of a 250-year lease on a new office comprising 210,000 square feet at Two Arena Central, a part of Birmingham’s Enterprise Zone.
HSBC CEO Antonio Simoes wrote in a memo: "This is a big decision and the work involves a large number of people. Given that the customer base, employees and branch network of the ring-fenced bank cover all of the UK, London isn’t necessarily the best place for the head office."