The company said in, addition to the proposed sale – which is worth up to £100m ($150m, €116m) – it plans to close its Dubai International Finance Centre-based private banking business. It has also announced “in principle” that it plans to withdraw its presence in South Africa.
The sale to UBP will include Lloyds’ Geneva-based private bank, its branches in Geneva, Zurich, Monaco and Gibraltar and its representative office in Montevideo. Not included is Lloyd’s Miami office which is subject to a separate sale to Banco Sabadell to which it is also selling all of its retail banking business.
Lloyds said its UK-offshore businesses including the Channel Islands, Isle of Man and Gibraltar will not be affected as a result of the transaction.
The business being sold offers a range of personalised banking, investment and planning services to high net worth individuals and families.
In a statement Lloyds said: “UBP has an attractive proposition for the clients of its international private banking business and the senior client facing teams of the Business are expected to transfer to UBP on completion of the transaction.”
At the end of March, the assets under management of the business were approximately £7.2bn and the total balance sheet assets were approximately £729m. The business reported a loss of around £50m in 2012.
UBP is to pay up to £100m for the business of which Lloyds said it expects £65m at close of the deal, with the rest deferred and payable in the two year period following completion of the transaction, dependent on the performance of the business of that period.
