Bank of America and Citigroup warn of uncertainties

Citi Building Canary Wharf

Bank of America said its businesses and results could be adversely affected and it may have to incur additional costs if Britain's exit from the European Union limits the ability of its UK entities to conduct business in the bloc.

Reuters reports that the bank said in a regulatory filing on Monday that Brexit vote has introduced 'complexities and variables' in calculating fair values of certain businesses.

BofA, whose UK exposure is concentrated in multinational corporations and sovereign clients, said net exposure to the UK totaled $56.31bn as of June 30.

In the meantime, Bloomberg News reports that Citigroup, the bank that draws more revenue from abroad than any of its U.S. peers, said it expects a challenging business environment in part because of 'significant uncertainties' following the U.K.’s surprise vote to leave the European Union.

The bank had $108.4bn in exposure, including loans and derivatives, to the U.K. as of June 30, the most of any country other than the U.S., Citigroup said on Monday in a quarterly filing. That compares with $110.4bn at the end of 2015. About half of the second-quarter U.K. exposure was unfunded corporate lending commitments, the bank said.

BofA warns of impact if Brexit uncertainty continues

Citigroup Sees ‘Significant Uncertainties’ After Brexit Vote

 

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