Butterfield to acquire Deutsche Bank global trust business

The Bank of N.T. Butterfield & Son Limited announced last week that it has entered into an agreement to acquire the Germany-based Deutsche Bank’s Global Trust Solutions business.

The acquisition does not include the Global Trust Solutions U.S. operations, and the terms of the agreement were not disclosed.

Subject to regulatory approvals, Butterfield will take over the management and administration of the Global Trust Solutions portfolio, which comprises of some 1,000 trust structures for roughly 900 clients.

The bank is offering Global Trust Solutions employees to work in Cayman, Guernsey, Switzerland, Singapore and Mauritius.

“This will ensure continuity of service for clients,” Butterfield stated in a press release.

Butterfield will partner with Deutsche Bank to serve the latter’s clients on an ongoing basis. The transaction is expected to close in the first half of 2018.

Butterfield Chairman and CEO Michael Collins said the deal – the fourth major acquisition since 2014 – will help his firm strengthen and expand its trust business, which currently administers about US$95 billion in assets.

“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,” Mr. Collins said. “It also provides us with a physical presence in Asia, which we view as a growth market for Butterfield.”

For the part of Deutsche Bank, the firm’s head of wealth management, Fabrizio Campelli, said the transaction will allow it to simplify its business and position it to grow its wealth management services in core markets.

Along with announcing the acquisition, Butterfield also stated in U.S. Securities and Exchange Commission filings last week that its net income for the third quarter of this year was $41.1 million – up from $37.5 million from Q2 and $33.4 million from Q3 of last year. Its return on average assets was 1.5 percent, and its return on average common equity was 20.7 percent.

“Butterfield delivered solid results this quarter as lending margins improved and expenses began to return to a more normal level,” Mr. Collins said.

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