Terms of the agreement — which will give the bank a foothold in Singapore — have not been disclosed but Butterfield’s chairman and chief executive officer, Michael Collins, said the price is under US$50 million.
The transaction is expected to close in the first half of 2018, subject to customary regulatory conditions.
Butterfield — Bermuda’s oldest bank — has been providing trust and fiduciary services to international clients for more than 80 years.
Its award-winning trust business comprises more than 200 professionals based in Bermuda, the Cayman Islands, the Bahamas, Guernsey and Switzerland.
Upon completion of the transaction, Butterfield will take over the ongoing management and administration of the GTS portfolio, comprising some 1,000 trust structures for some 900 private clients.
The bank is offering positions to about 90 employees who are fully dedicated to GTS in the Cayman Islands, Guernsey, Switzerland, Singapore and Mauritius.
Collins said the new trust business was about 20 to 25 per cent the size of the bank’s existing trust business. At the end of September, Butterfield Trust had assets under management of about US$95.2 billion.
“Having a platform in Singapore will allow us to grow,” said Collins, addi9ng “Singapore is obviously a market we have wanted to get into for a long time. Having a presence there is really important.”
The Singapore platform is understood to have about 15 staff, and will generate about 20 per cent of the additional trust business revenue.
In a statement, Collins said “trust is a core business for us, and the acquisition of the Deutsche Bank Global Trust Solutions business enables us to add scale and professional bench strength to our trust operations in Switzerland, Guernsey and Cayman.
“It also provides us with a physical presence in Asia, which we view as a growth market for Butterfield. We look forward to welcoming GTS clients and staff to Butterfield and to the development of new business from an ongoing partnership with Deutsche Bank’s wealth management team.”
Deutsche Bank, which is headquartered in Frankfurt, Germany, is one of the world’s largest banks by total assets. Its wealth management business is also one of the largest in the world, with client assets of around $347 billion.
Referring to the acquisition, Fabrizio Campelli, Deutsche Bank’s global head of wealth management, said “Butterfield is a well-known leader in the trust industry and we look forward to working with them to provide our clients with a broader product offering. The divestiture represents an important step in our strategy of simplifying our business and positioning wealth management for growth in our core markets.”
It is the fourth significant acquisition for Butterfield since 2014.
Earlier this week, the bank reported a profit of US$41.1 million for the third quarter, up five million dollars on the previous three months.
- Countries: Bermuda