Bank of Butterfield's Hong Kong operations, established in 1986, consist of Butterfield Trust (Hong Kong) Limited, Butterfield Corporate Services (Hong Kong) Limited, and a Restricted Licence Banking Branch. Dexia BIL has acquired a majority interest in the Trust and Corporate Services operations and will take over the business of the restricted license branch once they have regulatory approval. The names of the companies will be changed to reflect the new ownership in the near future.
In making this announcement, Graham Brooks, Executive Vice President, International & Trust, Bank of Butterfield, said that the transaction is strategically significant for the Bank. It is consistent with the Bank's overall strategy to focus on core strengths while enhancing shareholder value.
"We have made considerable progress in Hong Kong in recent years," said Mr. Brooks. "This transaction will enable us to continue to participate in the highly competitive Hong Kong market through an alliance with a major global provider of administration and custody services to the investment and pension fund industry. This will also allow us to continue to provide services to our Hong Kong based customers who maintain accounts in Bermuda, Cayman, Guernsey and the United Kingdom."
"We are pleased that Dexia intend to retain the existing management and personnel of our operations to ensure continuity of service," Mr. Brooks added. Austin Caffrey will join Dexia and will continue to head up the Hong Kong operations and Graham Brooks will remain a Director.
Dexia BIL is part of the Dexia group, one of Europe's largest international financial services companies, employing 26,000 people in 22 countries. At its last financial year end, the group had balance sheet footings of EUR 351 billion and EUR 219 billion assets under administration. Dexia has the resources, expertise and customer base to effect substantial growth in Hong Kong. "We look forward to participating in the significant impact which we expect these businesses to make upon the market," said Mr. Brooks.