Coutts Bank (Switzerland) Ltd to acquire Bank von Ernst
9 October 2003
Coutts Bank (Switzerland) Ltd, part of the Coutts Group, which is wholly owned by The Royal Bank of Scotland Group, has reached agreement with Bayerische Hypo-und Vereinsbank AG (HVB) to acquire its private banking subsidiary, Bank von Ernst & Cie AG, in a £228 million deal, payable in cash.
Headquartered in Zurich, Coutts Bank (Switzerland) Ltd manages approximately £12 billion of assets on behalf of 16,000 private client accounts.
Bank von Ernst was established in 1869 and its head office is in Zurich.As at 30 June 2003, it managed approximately £6 billion of client assets and had approximately £87 million of shareholders’ equity.
Commenting on the acquisition, Gordon Pell, Chief Executive of the Coutts Group, said “We are delighted to acquire Bank von Ernst, one of Switzerland’s most respected private banks.This is a good opportunity for Coutts to build a greater presence in the international private banking arena.”
This transaction, which is expected to complete by the end of 2003, is subject to regulatory approvals. The Royal Bank of Scotland Group believes that the deal will be accretive to earnings (before goodwill amortisation and integration costs) in 2004 and thereafter.
Background Notes
The Royal Bank of Scotland Group
The Royal Bank of Scotland Group is Europe’s 2nd and the world’s 5th largest banking group by reference to market capitalisation as at 31 December 2002. The Group’s main areas of operation are the United Kingdom, Europe and the United States. It employed 110,800 staff world-wide as at 30 June 2003.
The Group includes one of the strongest portfolios of brands in the financial services sector, including The Royal Bank of Scotland, NatWest, Direct Line, Churchill, Coutts Group, Tesco Personal Finance, Ulster Bank, Lombard, and in the US, Citizens.
The Coutts Group
The Coutts Group is the international private banking arm of The Royal Bank of Scotland Group. The Coutts Group manages £36 billion of assets on behalf of 75,000 clients world-wide. Founded in 1692, Coutts is the UK's leading private bank.
Coutts Bank (Switzerland) Ltd is the centre of the international private banking operations of the Coutts Group. As one of Switzerland's leading foreign private banks, Coutts Bank (Switzerland) Ltd offers a wide range of financial services to wealthy private clients with global business interests and internationally diversified assets.
HVB
HVB Group is the second largest private-sector bank in Germany with over 66,500 employees, 2,100 branch offices and more than 8.5 million customers.
Bank von Ernst
Bank von Ernst has transformed itself from a private bank catering to wealthy Bernese families into a global institution with a diversified client base. With subsidiaries in Vaduz and Monaco, as well as representative offices in Europe, Asia and the Americas, Bank von Ernst offers the advantages of Swiss private banking with a global focus.
For further information
Royal Bank of Scotland Group plc
Media Relations
Carolyn McAdam
+44(0) 131 523 2055
+44(0) 7796 274968
Investor Relations
Lorraine Sime
+44 (0) 207 672 1758
+44 (0) 7909 873681
Coutts Group
Julie Hurcomb
+44 (0) 207 753 1774
+44 (0) 7970 001038
HVB Press department
Cornelia Klaila
+49 (0) 89 378-26017
+49 (0) 89 378-25699
cornelia.klaila@hvbgroup.com
Issued on behalf of the Coutts Group by Coutts & Co, which is authorised and regulated by the Financial Services Authority.
None of the overseas companies in the Coutts Group or overseas offices of Coutts & Co is an Authorised Person subject to the rules and regulations made under the Financial Services and Markets Act 2000 for the protection of investors, and compensation under the Financial Services Compensation Scheme will not be available in respect of business transacted with them.
Telephone calls with Coutts Group companies may be monitored or recorded in order to maintain and improve our service.