19 April 2010
The Kleinwort Benson Group announced today the achievement of its first creditrating as a stand alone entity. The independent credit rating takes Kleinwort Benson a critical step closer to becoming the UK and Channel Islands’ leading wealth manager and financial services provider.
The credit rating is another positive milestone as Kleinwort Benson moves towards the completion of its sale to RHJ International S.A. (RHJI) Moody’s Investors Service today assigned Baa2/Prime-2 long and short term deposit ratings and a bank financial strength rating (BFSR) of C- to the two banking entities in the Kleinwort Benson Group: the UKbased Kleinwort Benson Private Bank Limited and the CI-based Kleinwort Benson (Channel Islands) Limited. The outlook for all ratings is stable.
The short term rating applies to all deposits with maturity of up to one year and the long term rating is applicable to deposits with a maturity exceeding one year. Client custodial and investment assets will continue to be segregated and are not affected by this announcement.
When looking at the stand alone creditworthiness of UK and Irish financial institutions (excluding those in receipt of extraordinary Government support) the Kleinwort Benson Group is one the best rated financial institutions in the UK and Channel Islands1.Moody’s judged the Kleinwort Benson Group to have a number of financial and organisational strengths, those primarily being strong capitalisation, excellent asset quality on a small loan book, a conservative risk management culture and a well entrenched and respected financial services franchise in the UK and Channel Islands.
Robert Taylor, Chief Executive of the Kleinwort Benson Group, believes that the positive Moody’s rating will provide clients with considerable reassurance regarding the security of their deposits. "We are pleased with the Moody’s rating. It acknowledges our strong financial position and recognises that our new shareholder RHJI offers considerable equity capital to underpin our development. On completion of the sale, the Kleinwort Benson Group will be one of the most well capitalised businesses of our size in the financial services industry2," he said.
1 A table comparing credit ratings across the private banking sector is available
2 Information that compares the capitalisation of Kleinwort Benson against its peer group is available
News Release
Kleinwort Benson’s tier one capital ratio, which at over 20% is significantly in excess of typical banking regulatory requirements, places the wealth manager and financial services provider well above many organisations in the sector.
The Kleinwort Benson Group employs a conservative treasury management policy whereby its loan book is funded solely from the receipt of client deposits and is not reliant upon the wholesale credit markets. New shareholder RHJI will further strengthen the Kleinwort Benson Group’s position by providing additional financial resources to underpin plans for future expansion and ensure continued stability.
As a publicly traded company, RHJI possesses a sizeable permanent capital structure and equity amounting to more than € 914 million. RHJI has a solid capital base with a healthy balance sheet. Over the coming years RHJI will dispose of its holdings in other companies and will reinvest this capital in the development of the Kleinwort Benson Group. Indeed, several key divestments have already been made to allow for further investment. RHJI’s management team has extensive experience in the global financial services industry and is already investing a significant amount of intellectual capital and expertise into the Kleinwort Benson Group.
The Moody’s rating is subject to the completion of the sale, which is subject to regulatory approval and is scheduled to take place before the end of July. Until that time the Kleinwort Benson Group maintains the full financial backing and support of its current shareholder Commerzbank AG.
RHJ International S.A. which is listed on the Belgian EURONEXT is acquiring the Kleinwort Benson Group and its historic financial services brand from Commerzbank AG, following the German bank’s decision in May 2009 to divest itself of its non-domestic wealth management businesses. RHJI is transforming itself from a diversified industrial holdings company into a business with an exclusive focus on banking and financial services. This will be done by divesting its industrial holdings over time and by further developing a strategic portfolio of financial services companies. The cornerstone of this transformation is the acquisition of the Kleinwort Benson Group.
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For media enquiries, or to receive the table comparing credit ratings across the private banking sector or information that compares capitalisation of Kleinwort Benson against peer group
please contact:
Kleinwort Benson Rachel Butler +44 (0) 20 3207 7239
Phoenix Financial PR Gordon Puckey +44 (0) 20 7947 2856
News Release
Karin Tyche +44 (0) 20 7947 2858
Notes to Editors:
About Kleinwort Benson
Kleinwort Benson is one of the most historic names in British banking with roots dating back to the 1790s and provides a range of bespoke wealth management and financial services solutions to private individuals and corporates. We offer our clients advice and solutions which are completely tailored to their individual wealth planning needs. With an offering spanning investment management, tax and banking, trust and fiduciary services we provide our clients with a truly holistic service. Operating from the City of London, the Channel Islands and a network of regional offices, and via a range of networks across the globe, we are always able to be close to our clients wherever in the world they are.
In addition, Kleinwort Benson is one of the first major banks to have established in the Channel Islands nearly 50 years ago and is consistently ranked as one of the top ten providers of administration and custodian services, working with fund managers across a wide range of traditional and alternative asset classes.
Kleinwort Benson is the brand name of Kleinwort Benson Private Bank Limited. Kleinwort Benson Private Bank Limited is authorised and regulated by the Financial Services Authority, registered number 119269 and is a member of the London Stock Exchange, APCIMS and the British Bankers Association. Kleinwort Benson Private Bank Limited is a company incorporated in England and Wales with company number 2056420 and VAT number 244733560. Registered Office 30 Gresham Street London EC2V 7PG. Telephone +44 (0) 20 3207 7000. Telephone calls may be recorded.
Kleinwort Benson is the brand name for Kleinwort Benson (Channel Islands) Limited which is regulated by the Jersey Financial Services Commission and its Guernsey branch is regulated by The Guernsey Financial Services Commission. It is also authorised and regulated by the UK Financial Services Authority in respect of UK regulated mortgage activities, and its firm reference number is 310344. Copies of the latest audited accounts are available for inspection on request. Registered in Jersey, Company Number 1215. Registered Office Kleinwort Benson House Wests Centre St Helier Jersey Channel Islands JE4 8PQ. Telephone calls may be recorded.