Butterfield has entered into an agreement to acquire Deutsche Bank’s banking and custody business in Jersey, Guernsey and the Cayman Islands.
Deutsche Bank has made a strategic decision to sell its banking and custody business in the Channel Islands and the Cayman Islands, and will refer its clients to Butterfield to which they will have the opportunity to transfer their banking relationships.
Butterfield has operated in Guernsey and Cayman for over 45 years and 50 years, respectively.
To assist with the transition, as well as the ongoing management and growth of the acquired business, Butterfield intends to offer positions to a majority of those Deutsche Bank employees available to transfer along with the acquired business. This includes employees in Mauritius who provide operations and support services to the Cayman and Channel Islands banking and custody businesses.
Michael Collins, Butterfield’s Chairman and Chief Executive Officer, said, “Butterfield is focused on building shareholder value through both organic growth and the acquisition of businesses that fit our core banking, wealth management and trust competencies in high quality offshore markets. The acquisition of Deutsche Bank’s Global Trust Solutions business announced in October will provide Butterfield with a Singapore trust company.”
“We have long had an interest in establishing operations in Singapore to support the growth of our legacy Trust business in Asia. And with this banking transaction, we will gain a presence in Jersey to complement our existing Guernsey-based Channel Islands bank, giving us increased scale and the opportunity to realise operational economies in the region.”
Fabrizio Campelli, Global Head of Deutsche Bank Wealth Management, said: “We are continuing to simplify our organisation and make our business more efficient for the benefit of our clients. This transaction represents another important milestone in repositioning Wealth Management for growth in our core markets.”
Richard Saunders, Managing Director of Butterfield (Bank) Guernsey Limited, said: “Butterfield has operated in Guernsey for 45 years, and it is exciting to be planning the expansion of our banking presence in the Channel Islands. We are looking forward to the opportunity to build the Butterfield brand in Jersey and to welcoming our new colleagues to the Group. Both Guernsey and Jersey are important international finance centres with huge potential for growth, and expansion in these markets is a key part of Butterfield’s strategic plan.”
The transaction is expected to close in stages during 2018, subject to all regulatory approvals and other customary closing conditions.
