ANNOUNCEMENT: Expert Investor is now PA Europe. Read more.

Danske Bank International to sell Luxembourg wealth business

The asset deal is the second acquisition by UBP in a week


Kirsten Hastings

Union Bancaire Privée is to grow its European hub with the acquisition of Danske Bank’s wealth management business in Luxembourg – operating through Danske Bank International (DBI).

Financial details were not disclosed. However, it is an asset deal that, subject to regulatory approvals, is expected to close in Q4 2021.

It is the second acquisition for UBP this week, after it reached a deal to buy the Swiss private banking arm of Banco Comercial Português.

Wealth management

DBI established a presence in the duchy in 1976 and specialises in international private banking. It has clients in nearly 60 countries, worldwide.

It caters mainly to high and ultra-high net worths from Nordic countries – primarily Denmark – who reside outside their home country, but mostly in Europe.

UBP first set up shop in Luxembourg in 2002, operating through two wealth management and asset management subsidiaries.

The acquisition will take the Swiss bank’s assets under management in Luxembourg to roughly CHF 33bn.

As of 31 December 2020, AUM across the group totalled CHF 147.4bn.

Enhanced team

UBP chief executive Guy de Picciotto said: “This transaction confirms our ambition to increase our footprint in Luxembourg, which became UBP’s European hub a few years ago.

“It is undoubtedly an opportunity to strengthen our growth strategy on the Nordics with a seasoned team of bankers and investment professionals, and to further enhance our local leadership team.”

Glenn Söderholm, head of personal & business customers at Danske Bank, added: “With UBP, we are confident that we have found the right partner for our customers, a partner who will continue to meet their individual needs with the highest possible quality, and at the same time be a good employer for our skilled and dedicated employees.”