The sale includes business managed from Switzerland, Monaco, the Middle East, Singapore and Hong Kong, and assets under management of over CHF 30 billion.
The price paid is yet to be finalised and will be determined in part by assets under management on closing sometime in Q4 this year. RBS does not expect to make a significant profit from the sale once the goodwill write off has been accounted for.
UBP said the acquisition represents ‘a major step forward in the Bank’s growth strategy’ to broadening its wealth management activities and global reach.
The move is a consequence of RBS’ decision to pull back from its global ambitions to create a UK-focussed bank. It will retain the Coutts legal entity and UK clients.
“Last year we set out a clear strategy to create a truly UK-focused bank. This announcement is another important step in that process, said Alison Rose, CEO, commercial & private banking at RBS.
“Following an extensive review, it was clear that the bank we are building would not be the most appropriate owner of the business being sold,” Rose added. “We gave careful consideration to identifying a buyer with the capability to take on this business in order to minimise the impact on clients and staff. We believe that in UBP we have found a good long term owner for this business.”
“This acquisition confirms our commitment in further developing our wealth management business and represents a significant milestone in our growth strategy,” said UBP’s CEO Guy de Picciotto.
“This is particularly true for high-potential markets such as Asia, where the international business of Coutts has built long-standing relationships with high net worth clients. We look forward to welcoming the new teams; their breadth of know-how in wealth management will perfectly complement our investment management expertise,” he added.
