Butterfield Bank (Cayman) Limited, a wholly owned subsidiary of The Bank of N.T. Butterfield & Son, has agreed to acquire buy parts of HSBC’s corporate and retail banking operations in the Cayman Islands.
The transaction is expected to be close in the fourth quarter of 2014.
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Butterfield said the approximate value of assets being transferred from HSBC Bank (Cayman) is US$800 million.
As part of the deal, HSBC Cayman will start its scale down preparations to take on new business and will look to reduce the impact on the remaining customers during this period.
According to Butterfield Bank, gross assets of the business as at 31 March 2014 were about US$800 million the total assets of HSBC Cayman at the same date were around US$1.4 billion.
Brendan McDonagh, chairman & CEO of Butterfield said: "Cayman is an important financial jurisdiction and a key domestic market for Butterfield. Over four decades, Butterfield has invested in the growth and development of the Bank in Cayman, and we are proud of our position as one of the largest community banks.
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By GlobalData"This transaction strengthens our core business and market position in Cayman and is in keeping with our Group strategy of deploying capital to business development in core markets and businesses in which we have the scale and expertise to drive long-term growth," McDonagh added.
Richard Moseley CEO of HSBC Bank (Bermuda) said: "This transaction marks further progress in HSBC Group’s strategy. During this period of transition, the servicing of our clients and the smooth transition of our business to Butterfield Bank (Cayman) Limited together with ensuring the well-being of our Cayman staff are our top priorities.
"From now until the closing of the transaction, the customers will remain customers of HSBC Bank (Cayman) Limited. We will work with Butterfield Bank (Cayman) Limited to provide a smooth and coordinated transition, "he added.
