Coutts Bank (Switzerland) Limited, part of the Coutts Group, which is a wholly owned subsidiary of The Royal Bank of Scotland Group, has reached agreement with Bayerische Hypo-und Vereinsbank AG (HVB) to acquire its private banking subsidiary, Bank von Ernst & Cie AG, in a 228 million deal, payable in cash.
Headquartered in Zurich, Coutts Bank (Switzerland) manages approximately 12 billion of assets on behalf of 16,000 private client accounts. Bank von Ernst was established in 1869 and its head office is in Zurich. As at 30 June 2003, it managed approximately 6 billion of client assets and had approximately 87 million of shareholders equity. This transaction, which is expected to complete by the end of 2003, is subject to regulatory approvals. RBS believes that the deal will be accretive to earnings (before goodwill amortisation and integration costs) in 2004 and thereafter.
Bank von Ernst has transformed itself from a private bank catering to wealthy Bernese families into a global institution with a diversified client base. With subsidiaries in Vaduz and Monaco, as well as representative offices in Europe, Asia and the Americas, Bank von Ernst offers the advantages of Swiss private banking with a global focus.