Northern Ireland’s Davy buys part of Danske Bank’s wealth biz
Davy Private Clients (UK), the Northern Irish wealth management company, has acquired part of Danske Bank’s discretionary portfolio management wealth business.
The deal involves the transfer of the management of more than 1,100 Danske Bank customer investment portfolios, Davy said in a statement. Twelve Danske Bank employees are to join Davy, and none will be made redundant.
Such details as the price being paid weren’t disclosed.
The movement of the accounts is expected to be completed by the end of October.
‘Preferred referral partner’
As part of the agreement, Danske Bank will make Davy its preferred referral partner for private banking customers seeking options to invest over £150,000.
The deal is the latest in a succession of acquisitions by Davy, which in recent years has snapped up a number of Northern Irish investment and wealth advisory businesses, including PFC, Graham Corry Cheevers, and Square Seven Financial Planning.
Richard Caldwell, managing director of personal banking and small business at Danske Bank (pictured right, above), said that although the wealth management unit it is selling to Davy had been “a good part of our business for many years, thanks to the expertise, hard work and customer ethos of our wealth specialists”, a strategic review of the business had revealed that having “support in this area” provided to Danske by an outside specialist wealth management company would actually be “the best way forward for our customers”.
Caldwell noted that the unit has been overseeing assets under management on behalf of its clients of around £500m.
Davy (UK) chief executive Stephen Felle (pictured left, above) added that the addition of Danske Bank’s business would give Davy “an opportunity to build long-term relationships with a new group of customers”, while also underpinning Davy’s position as a wealth manager and launching “a new era of partnership” between two major financial institutions.
Davy was founded 90 years ago and is regulated by the UK’s Financial Conduct Authority. It claims to be Northern Ireland’s largest wealth manager, with total assets under management across the UK and Ireland of more than £12bn (€13.56bn), and employs more than 660 people, including 65 in Northern Ireland.
The Danske Bank Group is based in Copenhagen and listed on the NASDAQ Copenhagen exchange. Its UK operation, Danske Bank UK, is one of Northern Ireland’s largest lending institutions, operating out of some 44 branches and three regional business centres. It employs around 1,400 staff across the province, who look after personal, business and corporate clients on behalf of the bank.