SG Hambros to Buy ABN Amro's UK Private Client Business

Stephen Harris

13 September 2007

UK-based private bank SG Hambros is stealing a march on its competition by buying the troubled UK private client business of ABN Amro. SG Hambros Group Head of Private Banking, Eric Barnett, will oversee the smooth migration of the business. Commenting on the deal, Warwick Newbury, chief executive of SG Hambros Bank said: “This acquisition follows a number of years of rapid growth since Hambros Bank was itself acquired by Societe Generale in 1998 to develop private banking in the UK and the Channel Islands. We look forward to welcoming both staff and the clients of ABN Amro Private Banking London ". The purchase of the business which has around £1 billion of assets under management, is likely to surprise the market which has been focusing exclusively on the competing bids for ABN Amro from Barclays and the RBS Consortium. In a statement, ABN Amro said: "This is consistent with our policy of exiting businesses where we are not contributing to our core business and where we are not able to realise maximum potential for our clients. We announced at our Q3 2006 results that we would continue to look at our portfolio of businesses and activities and divest those businesses or activities which do not contribute to achieving our long term growth strategy. The deal announced today should be seen in this context." Earlier this year SG Hambros appointed Duncan Shimmin and Melanie Satterthwaite who both joined from ABN Amro, to boost its regional presence in the UK. In July fellow Dutch bank ING recruited five from the London private client operation of ABN Amro, all of whom will have joined by the end of October, for its new private banking operation. The moves are thought to have left ABN Amro with only a handful of private client advisors in London, according to sources. Last year Craig Franklin head of the Dutch bank’s Jersey private banking business resigned along with Mark Henney, the head of the UK business and Sarah Beirne, HR director. Richard Nunneley, Michael Betesh and David Agie de Selsaeten also left ABN Amro last year.