The Bank of N.T. Butterfield & Son Limited (“Butterfield”) today announced that it has sold its trust, wealth management and advisory businesses in Hong Kong and its trust operation in Malta to the founder from whom the businesses were acquired.
In October 2007, Butterfield acquired the entire share capital of the Bentley Reid Group, a privately held international wealth management company with offices in Hong Kong, Malta and the United Kingdom.
Under the transaction announced today, Nic Bentley, currently Deputy Chairman, Butterfield Private Office (HK) Limited and founder and previously Chairman of the Bentley Reid Group, will reacquire the Malta and Hong Kong businesses which will operate under the Bentley Reid name.
The former Bentley Reid operations in London have been successfully integrated with Butterfield’s private banking, asset management and family office businesses in the UK and have served to enhance the Group’s wealth management offering in that jurisdiction. They are not affected by this transaction. Rupert Bentley, who was CEO of Bentley Reid Group prior to its acquisition by Butterfield in 2007, will remain with Butterfield Bank (UK) Limited in London in his capacity as Head of Asset Management. He will also join the Board of the new Bentley Reid Group. Butterfield Bank (UK) Limited will continue to manage investment portfolios for clients of the new Bentley Reid Group entities.
As a result of the sale, in the third quarter Butterfield will take a charge of approximately $7.8 million, including a write-off of intangible assets of $4.2 million. The businesses being sold generated net income of $0.4 million in the first half of 2010.
Brad Kopp, Butterfield’s President & Chief Executive Officer, commented on the transaction: “As we work to return the Bank to a position of stability and profitable growth, we have decided to focus our resources on a smaller number of key jurisdictions.” Mr. Kopp continued, “We look forward to working with Nic Bentley and his team to provide continuity of client services and relationship management to our valued clientele in Hong Kong and Malta and leverage our successful asset management business in the UK run by Rupert Bentley.”