The agreement excludes Deutsche Bank’s US domestic trust business, which remains a core part of its Wealth Management offering. Terms of the agreement were not disclosed.
Upon completion of the transaction, which is subject to regulatory approvals, Butterfield will take over the ongoing management and administration of the GTS portfolio, comprising approximately 1,000 trust structures for some 900 private clients. Butterfield is also offering positions to all employees who are fully dedicated to GTS in the Cayman Islands, Guernsey, Switzerland, Singapore and Mauritius. This will ensure continuity of service for clients.
Butterfield will partner with Deutsche Bank to provide trust solutions to Deutsche Bank’s clients on an ongoing basis. The transaction is expected to close in the first half of 2018, subject to customary closing conditions.
Fabrizio Campelli, Global Head of Deutsche Bank Wealth Management, said: “Butterfield is a well-known leader in the trust industry and we look forward to partnering with it and other providers to offer clients a broader range of trust solutions. The divestiture represents an important step in our strategy of simplifying our business and positioning Wealth Management for growth in our core markets.”
As announced in June, Deutsche Bank’s Wealth Management division plans to hire around 100 new client-facing employees in high-growth markets worldwide this year and to substantially increase its investments in digital capabilities.
The business aims to build out client coverage of high net worth individuals in Asia-Pacific, accounting for about half of total hires, with the rest accounted for by managers covering entrepreneurs in the US and ultra-high net worth clients in the UK, Middle East and other parts of the Europe, Middle East and Africa (EMEA) region.
The business will also invest an additional EUR 65m in new client-focused digital technology, including building a digital core offering that includes features such as customised Chief Investment Office news and portfolio health checks.
Butterfield has been providing trust and fiduciary services to international clients for more than 80 years. Its award winning trust business comprises over 200 professionals, based in the Bahamas, Bermuda, the Cayman Islands, Guernsey and Switzerland, who provide estate and succession planning services, efficient coordination of family affairs, and administration of complex holding structures for a wide variety of financial and non-financial assets. As of 30 September 2017, Butterfield Trust had Assets Under Administration of approximately USD 95.2 billion.
Michael Collins, Butterfield’s Chairman and Chief Executive Officer, 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 the new business from an ongoing partnership with Deutsche Bank’s Wealth Management team.”
For further information please contact:
Deutsche Bank AG
Phone: +44 20 754 14120
Tim Oliver Ambrosius
Phone: +49 69 910 42648
Phone: +44 20 754 17775
About Deutsche Bank
Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.
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