Royal Bank of Scotland (RBS) has confirmed it hired Goldman Sachs to seek potential buyers in the sale of Coutts International.
The sale of Coutts’ international operations could fetch more than £550 million, though buyers may not be allowed to use the Queen’s bank brand.
Go deeper with GlobalData
The task will be easier if potential investors already own a private banking business so they could transfer Coutts’ clients to their existing client base, it has been reported.
In August 2014, RBS, headed up by chief executive, Ross McEwan, declared it would sell Coutts International business into separate European and Asian divisions, keeping a strategic focus on its UK wealth unit.
However, RBS will possibly not split the business and sell the whole international business as one entity. Coutts’ CIO, Alan Higgins, recently told PBI there will most likely be "one buyer only" for the same.
Talking about potential bidders, Higgins had further told PBI: "Nearly every private bank will say ‘we’ll have a look’. Approximately 20 or 30 of them will have that initial look and t hen the number will slim down."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataJulius Baer, the Swiss private bank, recently showed interest in Coutts International, although CEO Boris Collardi said he was not willing to get into the bidding war as that would simply raise the acquisition price and be a "waste of time".
Quite a large number of rival Swiss private banks have also indicated their interest in Coutts’ international operations. Among the bidders are the two giant Swiss banks, UBS and Credit Suisse, as well as EFG International and Vontobel.
Brazil’s BTG Pactual, which recently bought BSI in Switzerland, has also expressed interest in Coutts International, as has RBC – who bought Coutts’ Latin American, Caribbean, and African private banking arms in 2012, adding more than $2 billion AuM to its business.
Coutts International employs 1,200 people and posted a £67 million operating profit in 2013, with around £21.5bn ($35bn) under management.
