HSBC to sell assets in Bermuda
HSBC Bank Bermuda Ltd, a subsidiary of HSBC Holdings, Tuesday said it has agreed to sell its Bermuda Trust Company Ltd and investment management operations in Bermuda to the Bank of N.T. Butterfield & Son Ltd.
The British banking giant said it will also refer its existing private banking clients to Butterfield in its filing to the Hong Kong stock exchange.
Butterfield is a community bank based in a community bank based in Bermuda.
According to HSBC, its Bermuda trust and investment business had about US$24 billion of assets under administration and US$1.5 billion of assets under management by the end of 2014.
Its private banking clients in Bermuda had about US$1.2 billion of assets under management.
The transaction is expected to complete in the first half of 2016.
This move follows HSBC Private Bank’s strategy to focus on a smaller number of future growth markets, the bank said.
HSBC early this year decided to exit Brazil and Turkey market as part of its restructuring plan launched in June, which aims to save cost of as much as US$5 billion by 2017 and shift assets to Asia.