The sale of the business currently branded as Coutts International, comprises client relationships outside the British Isles and associated staff and follows RBS’ decision to create a UK-focused bank.
Through its Coutts and Adam & Company brands, RBS will continue to service UK Private Banking and Wealth Management client needs, together with those of international clients with a connection to the UK from the British Isles.
According to UBP, the sale includes business managed from Switzerland, Monaco, the Middle East, Singapore and Hong Kong, and assets that are under management of over CHF30bn ($31bn).
In the first quarter 2015 results, Coutts will be treated as a disposal group, resulting in an expected charge in the order of £200m, primarily relating to goodwill write off.
The acquisition will enable UBP to broaden its wealth management activities as well as strengthen its presence in Switzerland and Monaco.
The international business of Coutts is claimed to have a strong foothold in markets where UBP had a limited presence.
UBP will also be able to increase its footprint in growth markets such as Central and Eastern Europe, the Middle East and Asia, and increase its asset base in select European markets.
UBP CEO Guy de Picciotto said: "This acquisition confirms our commitment in further developing our wealth management business and represents a significant milestone in our growth strategy.
"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."
Following the acquisition, clients will benefit from the conviction-driven investment approach of UBP, which further plans to maintain a solid financial base and a high capital ratio, and further invest in key development areas.
Caurus Partners and TC Capital will support the transaction, which remains subject to the requisite regulatory and other approvals being obtained.
Image: UBP will acquire RBS’ International Private Banking and Wealth Management business. Photo: courtesy of Royal Bank of Scotland
