The acquisition will boost UBP’s assets under management to about CHF93 billion.
Lloyds said it expects to receive approximately £65 million at closing, with the rest deferred and payable in the two year period following completion of the transaction.
The transaction will include the business of the Lloyd’s Geneva-based private bank, its branches based in Geneva, Zurich, Monaco and Gibraltar, and its representative office in Montevideo.
The agency office in Miami is excluded from the sale. Lloyds will also close the Dubai International Finance Centre based private banking unit.
Lloyd’s UK-offshore businesses including the Channel Islands, Isle of Man and Gibraltar will not be affected as a result of the sale.
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Matches UBP strategy to expand
UBP said the acquisition was a key step in the execution of UBP’s strategy to grow its global presence and to expand its private banking activities.
In a statement Lloyds said the group’s future wealth strategy is focused on serving mass affluent and affluent customers within the UK and Channel Islands, and those with UK connections.
As of 31 March 2013 the assets under management of Lloyd’s international private bank were approximately £7.2 billion and the total balance sheet assets were approximately £729 million.
The transaction is subject to regulatory approval. It is expected to complete in a number of stages, with the majority of the business expected to transfer in the second half of 2013 and the remainder by the first quarter in 2014.
