CREDIT Suisse is selling its private banking division in Germany to an ABN Amro subsidiary for an undisclosed price, the company announced today.
The Swiss banking giant effectively exits its private banking activities in Germany with the sell-off, but said it will keep on servicing its most wealthy accounts and individuals from the bank’s offices in Luxembourg and Switzerland.
Bethmann Bank, ABN AMRO’s private bank in Germany, will run the business, which currently has €10bn under management. The new unit becomes the third largest private bank in the country after the purchase, according to the Dutch company.
“It is a part of our strategic focus to be a leading European private bank,” said ABN Amro’s private banking boss Jerome Rijpkema.
ABN Amro was bailed out in the aftermath of the financial crisis and remains fully-owned by the state with headquarters in Amsterdam.
The Dutch government said in August it planned to sell ABN Amro via a float in a year’s time at the earliest but it was unlikely to recoup its costs.