Butterfield to acquire ABN AMRO's Channel Islands business
The Bank of N.T. Butterfield & Son Limited has agreed to buy the Channel Islands-based banking business of ABN AMRO for approximately £161m in cash ($208m).
The bank, based in Hamilton, Bermuda, hopes that the acquisition of ABN AMRO Channel Islands will significantly expand its presence in Guernsey and Jersey.
"In ABN AMRO Channel Islands, we have found an ideal partner through which to expand our core Channel Islands banking business. This acquisition is another important step in our strategy to grow through acquisitions in the highest quality offshore markets where we have scale and expertise. It underscores our continuing commitment to expand Butterfield's presence in the Channel Islands and the importance of these two jurisdictions to our multinational clients. ABN AMRO Channel Islands brings a conservative risk management culture, similar to that of Butterfield, and will contribute both management talent and sales expertise to our combined business," Michael Collins, Butterfield's Chairman and Chief Executive Officer, said.
In ABN AMRO Channel Islands, we have found an ideal partner through which to expand our core Channel Islands banking business"
"This represents an excellent opportunity for clients and employees, and we look forward to welcoming our new colleagues to Butterfield. Together, we bring long histories of client service at the highest level," he added.
After closing the deal, ABN Amro's Channel Islands business and employees will be integrated with the existing Butterfield Guernsey operations and operate under the Butterfield name.
Established in Guernsey for over 35 years, ABN AMRO Channel Islands offers banking, investment management and custody products to three distinct client segments, including trusts, private clients, and funds. As at December 31, 2018, ABN AMRO Channel Islands has a balanced client base with £2.9bn in deposits and £3.5bn in assets under management and custody.
The transaction is anticipated to close during the third quarter 2019, subject to regulatory and other customary closing conditions.
Butterfield reported a first-quarter profit of $52.1m this Thursday. The bank said it had earnings of 96 cents per share. Earnings, adjusted for non-recurring gains, came to 95 cents per share.
The community bank posted revenue of $142.5m in the period. Its revenue net of interest expense was $131.4m, which fell short of Street forecasts.
Bank of NT Butterfield & Son shares have risen 19% since the beginning of the year.
More From News
Most read
