Butterfield To Acquire Bermuda Trust Company

October 27, 2015

The Bank of N.T. Butterfield & Son Limited today announced that it has reached an agreement to acquire Bermuda Trust Company Ltd and the private banking investment management operations of HSBC Bank Bermuda Limited.

“In addition Butterfield has entered into a referral agreement with HSBC Bermuda to take on select Private Banking clients. The transfer is expected to be completed in the first half of 2016,” Butterfield said.

“A number of HSBC Bermuda’s Trust and Investment Business employees in Bermuda will be offered positions with Butterfield with a view to having former HSBC clients continue to be served by the same individuals who currently service their accounts.”

Michael Collins, Butterfield’s Chief Executive Officer, said, “We are pleased to welcome HSBC Bermuda’s Trust and Investment Business employees and clients to Butterfield.

“Our goal is to effect a seamless transfer of the business and ensure that clients enjoy continuity of service and access to an equivalent range of wealth management products and solutions to that which they have become accustomed to at HSBC.

“Butterfield’s growth strategy is centred on the development of our core businesses in existing markets. The acquisition of these businesses in Bermuda is very much in keeping with that strategy.

“It allows us to add scale to our franchise and bench strength to our teams of professional wealth managers and fiduciary specialists in a market where we have a significant presence and long history. We are well positioned to take on the HSBC business, and we are working closely with HSBC to ensure we do so in a way that is minimally disruptive to clients.

“Butterfield was established as a private bank 157 years ago, and we have been offering trust services to clients in Bermuda for more than 70 years, and brokerage and asset management services for nearly five decades.

“We understand the needs of high net worth individuals and their families, and we look forward to working closely with our new clients to ensure their needs continue to be met, effectively, efficiently and with a highly personal touch,” Mr Collins added.

Butterfield was advised by KPMG Bermuda and KPMG Guernsey. Butterfield’s legal advisers were Locke Lord, London. The transaction is subject to regulatory approval.

A statement from HSBC Bank Bermuda said they entered into an agreement to sell Bermuda Trust Company Ltd and its Private Banking investment management operations in Bermuda to Bank of Butterfield, and entered into an agreement to refer its existing Private Banking clients to Butterfield.

HSBC Bermuda said, “As at 31 December 2014 the Trust and Investment Business had approximately US$24bn of assets under administration and US$1.5bn of assets under management. The Banking Portfolio had approximately US$1.2bn of assets under management.

“The transaction is subject to regulatory approval and is expected to complete in the first half of 2016. It represents further progress in the execution of HSBC Private Bank’s strategy to focus on a smaller number of future growth markets.”

HSBC Bank Bermuda Limited’s CEO, Richard Moseley stated, “We are pleased to have reached this agreement with Butterfield. It marks further progress in delivering against the HSBC Group’s strategy to simplify its business.”

“Following the completion of the transaction, HSBC Bank Bermuda Limited will continue to focus on customers in our three core business lines: Retail Banking & Wealth Management [including HSBC Premier and Asset Management], Commercial Banking and Global Banking & Markets.”

“Until the transaction is complete, we will continue to provide the same level of service to our private banking clients whilst working with Butterfield towards a smooth transition of the business.

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Comments (6)

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  1. Faulk says:

    Unbelievable. HSBC have done Betmuda no favours and they are ditching this business as fast as they can only in the interest of appeasing regulators elsewhere.

  2. Lalalala says:

    Not a surprise… HSBC have been working to remove themselves from the retail banking business everywhere they had a presence. This was happening since the day they purchased BoB

    • Not so Safe says:

      I guess you didn’t read the whole article – “Following the completion of the transaction, HSBC Bank Bermuda Limited will continue to focus on customers in our three core business lines: Retail Banking & Wealth Management [including HSBC Premier and Asset Management], Commercial Banking and Global Banking & Markets.”

      • Faulk says:

        You are giving them too much credibility – the smallest, most local part of the business is what they are left with. They would shut it in an instant if they were not so heavily exposed to local real estate – their own and the loan book.

  3. Keepin' it Real!...4Real! says:

    Hmmm…HSBC…I smell the central banking cabal as it infests it’s way upon my shores.

    BUT on a lighter note I guess my interests rates SHOULD be getting a pleasant review now huh..?? Money is being made…somewhere.

    I’m getting cramp in my neck from looking up with my mouth open waiting for that “trick”Le down effect.

  4. Sobe says:

    HSBC putting the final nails in the Bank of Bermuda coffin during Halloween week… now they are left with Retail banking to find a way to offload…Ironic they broke off the two key businesses / reasons why they bought BOB in the first place – fund and trust administration. Big Banks…SMH…