Consolidation in the corporate trust business took a further step forward today with news that the Bank of New York has signed a definitive agreement to acquire Ohio-based Fifth Third Bank’s business.
The transaction involves the acquisition of approximately 5,000 bond trustee and agency appointments representing $45 billion of principal debt outstanding for nearly 4,000 clients. The transaction is subject to regulatory approval and is expected to close before year-end. The conversion is planned for the first quarter of 2004. Terms of the agreement were not disclosed.
“Fifth Third’s corporate trust group has an impressive presence and track record in the Midwest, and we share a similar approach to the business,” says Karen B.Peetz, executive vice president and corporate trust division manager for The Bank of New York. “This substantially expands our Midwestern presence as we plan to open corporate trust offices in Cincinnati, Detroit and Indianapolis, complementing our existing locations in Chicago and St. Louis. We look forward to welcoming Fifth Third’s corporate trust staff and clients to The Bank of New York.”
“The Bank of New York is a proven player in corporate trust services, and I am confident that our customers will continue to receive excellent service,” explains Steve Schrantz, executive vice president of Fifth Third Bancorp. “We will work very closely with The Bank of New York to ensure a seamless transition for our customers. Fifth Third is committed to offering best-in-class products as part of our relationship based approach to commercial banking, and trust services will continue to be a part of a complete product set for our middle market commercial clients. This agreement allows us to refine our focus and reinvest in our core businesses.”
The Bank of New York is rapidly becoming the largest provider of corporate trust and agency services. The bank and its subsidiaries and affiliates administer a portfolio of more than 85,000 trustee and agency appointments, representing more than $1 trillion in outstanding securities for more than 30,000 clients around the world.