Barclays private clients international takes top spot according to KPMG report
KPMG"s review of the Isle of Man banking sector has seen substantial changes as a result of corporate activity in the UK.
The Isle of Man banking industry is heavily dependent on licensing offshore arms of UK and Irish banks and in the latest public figures for 2002 Barclays Private Clients International took over the top spot from Isle of Man Bank.
Barclays reorganised its offshore arms in 2002 to create its headquarters and license in the Isle of Man. The bank already had a substantial presence on the island, employing 300-400 people, but the restructuring moved £5bn of deposits to the jurisdiction.
Isle of Man Bank, however, was formerly known as Natwest Offshore until its parent was taken over by Royal Bank of Scotland. The offshore headquarters was moved to Jersey and the Isle of Man office downgraded to a branch. As a result, about £7bn left, according to KPMG"s Isle of Man Banking Sector Review of Accounts 2003.
In total, assets for 2002 fell to about £23.7bn from £24.4bn in 2001. But Mike Gardner, banking industry group director at KPMG and the review"s author, says the figures are slightly misleading as branch deposits were not included in the review as they are not public, unlike those from licensed banks.
As a result, the IoM Financial Services Commission reports total bank deposits increased from £27bn in 2001 to £27.8bn by the end of 2002 and have now reached £29bn in September 2003.
Another move in the KPMG rankings saw Anglo Irish Bank (IOM) ranked seventh in the island"s banking licenceholders" league tables, up from number 11 the previous year.
Michael McGee, general manager of the Anglo Irish Bank"s Manx-based offshore operation, said: "Our core deposit taking business has grown 120% over the past three years, equating to around £552m, positioning [us] in the top 10 financial institutions in terms of asset size in the Isle of Man.
"2003 was our strongest year to date, the 18th consecutive year in which we have delivered growth in earnings. We have recently realigned our wealth management and trust operations more closely, restructured our executive management board, and will be relocating both sides of the business to a single headquarters in the Jubilee Buildings, Douglas in March."
Gardner said the IoM is keen to encourage other non-European banks to the island, although there are no immediate prospects of a large US or Japanese bank coming as a hedge against any impact of the European Union"s savings tax directive. Most banks are working on becoming licensed to the proposed rules that are due to come into force in January, he said.
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