CIBC Sells Guernsey Operations To Concentrate On North American Business

by Philip Morton, Investors Offshore.com

30 July 2001

The Canadian Imperial Bank of Commerce revealed last week that it has sold its Guernsey operation to the Bermuda and Cayman based Bank of NT Butterfield & Son for an undisclosed cash sum. CIBC Guernsey, which was launched in 1985, was one of the Canadian bank's six offshore locations, offering discretionary and non-discretionary investment and banking services to institutions and wealthy individuals.

CIBC said that the sale was part of its strategy to focus on maintaining and leveraging its North American client base, and on growing its Caribbean and Asian operations. It announced that it would still continue to serve those groups through its operations in the Bahamas, Barbados, the Cayman Islands, Hong Kong, and Singapore.

The Bank of Butterfield is delighted with the outcome of the proceedings, and it now has a fairly substantial presence on the island with 215 employees and a combined balance sheet in excess of £705 million (approx US$1 billion). 'This is a significant acquisition for Bank of Butterfield which continues our strategy of building on core activities and strengths,' said Graham Brooks, Executive Vice President, International and Trust, of the Bank of Butterfield Group. 'CIBC has built a high quality, well diversified business in Guernsey...With this acquisition we are bringing together two dynamic operations.'

According to the Bank of Butterfield, a process of integration will begin shortly, although all the former CIBC Guernsey operations will be renamed almost immediately to reflect Butterfield ownership.

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