Butterfield sells off overseas subsidiaries

The trust, advisory and wealth management businesses have been bought by the privately held Bentley Reid Group — which sold the businesses to Butterfield in October 2007.

Nic Bentley, currently deputy chairman of Butterfield Private Office (HK) Ltd and founder and previously chairman of Bentley Reid Group, will reacquire the Malta and Hong Kong businesses.

The former Bentley Reid operations in London are not affected by the sale.

They are integrated with Butterfield’s private banking, asset management and family office businesses in the U.K. and have enhanced the group’s wealth management in that jurisdiction.

Rupert Bentley, who was CEO of Bentley Reid Group prior to its acquisition by Butterfield in 2007, will remain with Butterfield Bank (UK) Ltd in London in his capacity as head of asset management. He will also join the board of the new Bentley Reid Group.

Butterfield Bank (UK) Ltd will continue to manage investment portfolios for clients of the new Bentley Reid Group entities.

As a result of the sale, in the third quarter Butterfield will take a charge of approximately $7.8 million, including a write-off of intangible assets of $4.2 million.

The businesses being sold generated net income of $0.4 million in the first half of 2010.

Brad Kopp, Butterfield president and CEO, said: “As we work to return the bank to a position of stability and profitable growth, we have decided to focus our resources on a smaller number of key jurisdictions.

“We look forward to working with Nic Bentley and his team to provide continuity of client services and relationship management to our valued clientele in Hong Kong and Malta, and leverage our successful asset management business in the U.K. run by Rupert Bentley.”