ANZ Completes Sale Of Trusts Business

Tom Burroughes

8 July 2014

Australia and New Zealand Banking Group has completed the sale of its ANZ Trustees business to Equity Trustees, as part of a trend by some of the world’s banks to offload such businesses, in some cases amid tightening margins.

As part of the agreement, formed a new strategic relationship with Equity Trustees involving a range of client referral and service arrangements. ANZ also retained its Philanthropic Advice, Estate Planning, Investment Management and Alternative Investment capabilities, it said in a statement yesterday.

Terms of the deal weren't disclosed.

“This sale allows us to focus on the key elements of our wealth strategy, while also providing our clients with continued access to specialist trustee administration services,” Joyce Phillips, chief executive global wealth at ANZ, said.

The trust business around the world has seen merger and acquisitions, in part because banks that had built or bought such businesses a few years ago have found the sector less profitable, and less costly, as regulations have grown on trusts. ABN AMRO sold its trusts business a decade ago to Equity Trust. Rival Netherlands-based firm ING spun off its trusts business in 2007. in the Channel Islands in Europe, deals included investment by Close Brothers Private Equity in Jersey Trust Company and Kleinwort Benson’s acquisition of Close Brothers Offshore Group. In 2011, TMF and Equity Trust merged.

Among recent developments at the ANZ Group, it was reported that ANZ Private Bank appointed Kevin Ong as head of Southeast Asia. He is based in Singapore, reporting to Manfred Liechti, global head of the private bank. Ong previously worked at UOB Private Bank, as executive director, head of sales, business development and marketing.