ABN Amro has agreed to sell its private banking activities in Asia and the Middle East to LTG Bank, a leading international private banking and asset management group based in Liechtenstein, the Financieele Dagblad reported on Tuesday. Terms were not disclosed.
The sale fits in with ABN Amro’s latest strategy, revealed in mid-November, to concentrate on further development of its private banking operations in northwest Europe.
Jeroen Rijpkema, CEO of ABN Amro Private Banking International, said: ‘We are happy to have found a strong and solid partner in LTG which will ensure the continuity of our service to clients and the future of our staff.’
ABN Amro’s Asian unit has about €18.5bn in assets under management for clients in Singapore, Hong Kong and Dubai and is the 18th largest private bank in Asia. The Asian operation also accounts for roughly 10% of all assets under management by ABN Amro worldwide.
The transaction, expected to be completed by the second quarter of 2017, is subject to approval of relevant banking authorities.
ABN Amro expects a ‘considerable book profit’ on the deal. US press bureau Bloomberg earlier put this at about $300m.
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