The Bank CBH Compagnie Bancaire Helvétique (CBH), a Swiss private bank, has agreed to buy Schroders’ Eastern European private banking arm along with its relationship management team, for an undisclosed sum.

The move comes after a review of the business, which concluded that the needs of the region’s clients would be more effectively met by a bank specialising in this geographic area. The entity to be acquired manages nearly €700m in assets.

“This transaction will not impact the equity strength of CBH, maintaining after completion of the transaction one of the highest Tier one ratio among Swiss Private Banks, currently above 30%,” Schroders said in a statement.

Commenting on the deal, CBH CEO Philippe Cordonier said: “This transaction demonstrates our long-term commitment in this strategic growth market and our intention to pursue the growth of our Zurich operations.”

The deal is expected to be completed in the fourth quarter of this year, subject to regulatory approval.

Schroder & Co Bank CEO Adrian Noesberger said: “We are confident that CBH is the ideal partner to continue the trusted relationship with our clients who are transferring. We believe it is important for the team of relationship managers who are exclusively responsible for looking after our Eastern European clients to continue to do this.”