Banque de Luxembourg is acquiring HSH Nordbank Private Banking S.A.'s private client business.
The corresponding agreement, which had previously been approved by the boards of directors of both banks, was signed by Torsten Heick, Vice-President of the board of directors of HSH Nordbank Private Banking S.A. and Head of Private Banking at HSH Nordbank AG, and Pierre Ahlborn, President of the Comité de Direction of Banque de Luxembourg, at the offices of HSH Nordbank Private Banking S.A. yesterday (May 4, 2011).
The transaction entails the assets held by HSH Nordbank Private Banking S.A.'s private clients, who are mostly German. It is expected to take legal effect in the second half of the year.
"This acquisition forms part of our efforts to develop our core activities, namely private banking, in which we play a leading role in Luxembourg. We are convinced that given the conditions currently prevailing in Europe Luxembourg's appeal as a financial services center has continued to grow - not least of all thanks to our expertise and the advantages we offer our private clients in the management of their assets, investment funds, and the quality of our services. Over the past three years, Banque de Luxembourg has invested 150 million to reinforce the growth of its activities in these areas," explains Pierre Ahlborn.
"In Banque de Luxembourg we have found a buyer from whose expertise and positioning our clients will benefit. We are confident that the transaction will be completed to the satisfaction of all parties concerned. For HSH Nordbank the sale additionally marks a further step in our successful strategic realignment," says Torsten Heick.
Banque de Luxembourg has strong roots in Luxembourg, where it manages the assets of numerous private individuals and families. In addition, it has a significant clientele in other European countries.
"Together with Belgium, Germany is one of the countries in which the effects of the financial crisis have prompted numerous investors to seek confidence-inspiring and specialized alternatives to the offerings available in their home country. We are therefore very pleased to welcome this new clientele whose expectations we are very familiar with given our many years of experience in Germany," adds Luc Rodesch, a member of the Comité de Direction of Banque de Luxembourg and Head of Private Banking.
In addition, Banque de Luxembourg wants to continue growing in the Grand Duchy of Luxembourg, while also reaching out to an international clientele seeking prudent asset management. The bank also assists businesses and families wishing to settle in Luxembourg.
Source: HSH Nordbank