Private bank to sell at auction, say reports

Friday 16 February 2024

The Channel Island branches of SG Kleinwort Hambros could be caught up in a deal to sell the private banking arm of Societe Generale, which may affect hundreds of employees across the islands.

Headquartered in London, Kleinwort Hambros - which has branches in Guernsey and Jersey - was said to hold more £12 billion ($15 billion) in assets under management in 2022.

Reuters has reported that it could be worth up to £700 million in a sale with Barclays said to be interested in bidding to buy it, to widen its own appeal to wealthy customers. 

SocGen is also understood to be "readying a sale of its private banking operations in Switzerland as it looks to shed businesses in a strategy revamp", Reuters reported.

Societe Generale declined to comment when asked about the impact on the SG Kleinworth Hambros offices in Guernsey and Jersey.

It also declined to confirm staff numbers across the Channel Islands but it is believed to be around 230 in Guernsey, according to Guernsey Finance. 

Pictured: Reuters reported the potential acquisition HERE.

Reuters said it had been told of Barclays planned bid for SG Kleinwort Hambros by "three people familiar with the matter".

Two of those sources are reported to have told Reuters that SocGen has started to invite bidders to take part in an auction for its Kleinwort Hambros business. SocGen is reportedly being advised by Rothschild & Co. 

Among those invited to bid for the unit are understood to be Lloyds Banking Group, Rathbones, and Raymond James but Barclays is reported to be the lead interest at this time with Rathbones already declining. 

Barclays has already bought Tesco's banking operations as it tries to diversify away from investment banking and it is due to release a business strategy review next week.