The Bank of N.T. Butterfield & Son (Butterfield) has agreed to acquire Bermuda Trust Company and the private banking investment management operations of HSBC Bank Bermuda.
At the end of 2014, HSBC’s trust and investment business had approximately $24bn of assets under administration and $1.5bn of assets under management.
HSBC Bermuda said the sale represents further progress in the execution of its strategy to focus on a smaller number of future growth markets.
Additionally, Butterfield has entered into a referral agreement with HSBC Bermuda to take on select private banking clients.
The deal, which is subject to regulatory approval, is expected to be completed in the first half of 2016.
Butterfield said it will offer positions to number of HSBC Bermuda’s Trust and Investment Business employees with a view to having former HSBC clients continue to be served by the same individuals who currently service their accounts.
Commenting on the deal, Butterfield CEO Michael Collins said: "We are pleased to welcome HSBC Bermuda’s Trust and Investment Business employees and clients to Butterfield. Our goal is to effect a seamless transfer of the business and ensure that clients enjoy continuity of service and access to an equivalent range of wealth management products and solutions to that which they have become accustomed to at HSBC."
HSBC Bermuda CEO Richard Moseley said: "Following the completion of the transaction, HSBC Bank Bermuda Limited will continue to focus on customers in our three core business lines — retail banking & wealth management, including HSBC Premier and asset management, commercial banking and global banking and markets."
"Until the transaction is complete, we will continue to provide the same level of service to our private banking clients whilst working with Butterfield towards a smooth transition of the business," Moseley added.