They are two of the oldest names in banking – and now they are going to join forces.
After Societe Generale of France took over the wealth management arm of BHF Kleinwort Benson Group, plans were revealed for the company to merge it with its own private bank, Hambros. The deal will create one of the top 20 wealth managers in the UK with more than 1,000 staff and £14 billion in assets under management.
An agreement was signed yesterday with Jean Francois Mazaud, the head of private banking at Societe Generale commenting in a statement that the acquisition will: “enable us to leverage on the expertise and strengths of the teams from each business to better serve our clients through the creation of a distinctive industry leader in wealth management.”
The French company is the latest in a long line of banks looking to expand their wealth management activities as they seen as being cash rich without soaking up capital. The bank is currently the second largest in France in terms of market value. It had 113 billion euros under management in private banking at the end of 2015 – with Kleinwort Benson boasting around seven billion euros in assets under management.