Butterfield buys part of Deutsche Bank business

Deutsche Bank said it was making a ‘strategic decision’ to sell its banking and custody arms in the Channel Islands and the Cayman Islands, while Butterfield hailed the deal as an ‘exciting’ part of the firm’s expansion plans.

Butterfield also said it was anticipating the majority of local staff at the transferring business to be offered jobs, although a spokesman was yesterday unable to provide detailed numbers.

Approximately 130 people currently support Deutsche Bank’s Channel Islands and Cayman Islands banking and custody business from offices in Guernsey, Jersey, Cayman and Mauritius.

However, the spokesman was able to confirm that offers will be made to all Deutsche Bank employees in Mauritius who support the banking business.

Subject to regulatory approval and other conditions, the deal is expected to close in stages during 2018.

‘The number of employees expected to transfer to Butterfield will be based on the operating models developed for each location,’ said a Butterfield spokesman.

‘In Guernsey and Jersey, offers will be extended directly to current Deutsche Bank employees for some roles, and other roles will be posted, with invitations extended to current Deutsche Bank employees to apply.

‘We anticipate that nearly all Deutsche Bank employees whose roles will be impacted by this transaction, and who are available and interested in joining Butterfield in the Channel Islands, will have the opportunity to do so.

‘At this time, however, we cannot provide precise numbers as we cannot know how many current Deutsche Bank employees will accept our offers of employment.’

Richard Saunders, managing director of Butterfield (Bank) Guernsey Ltd, said: ‘Butterfield has operated in Guernsey for 45 years, and it is exciting to be planning the expansion of our banking presence in the Channel Islands.

‘We are looking forward to the opportunity to build the Butterfield brand in Jersey and to welcoming our new colleagues to the group.

‘Both Guernsey and Jersey are important international finance centres with huge potential for growth, and expansion in these markets is a key part of Butterfield’s strategic plan.’

Michael Collins, Butterfield’s chairman and chief executive officer, added: ‘We will gain a presence in Jersey to complement our existing Guernsey-based Channel Islands bank, giving us increased scale and the opportunity to realise operational economies in the region.’

News of the planned acquisition comes after Butterfield reached an agreement in October 2017 to buy Deutsche Bank’s Global Trust Solutions business with operations in the Cayman Islands, Switzerland, Guernsey, Singapore and Mauritius.

All affected Deutsche Bank employees were offered roles at Butterfield, with more than 90% accepting to date – more than 60 staff across the five jurisdictions.