Nationwide Building Society is considering selling its Isle of Man-based deposit taking business, fo...
Nationwide Building Society is considering selling its Isle of Man-based deposit taking business, following approaches from third parties.
The building society has appointed independent investment bank Gleacher Shacklock LLP to review the options for Nationwide International, including its sale.
The move follows the planned merger between Nationwide and Portman building societies, which saw Portman Channel Islands sold to Scarborough Building Society.
Nationwide International has around 32,000 customers and deposit balances totalling around £2bn, with the average individual deposit exceeding £60,000.
It employs 45 people in Douglas on the Isle of Man and has a cost income ratio of 20%.
Mark Rennson, group finance director at Nationwide, said: "For potential buyers Nationwide International would provide an established position in the offshore banking sector, funding diversification and the opportunity to expand into the fast growing wealth management industry. However, a sale is not a foregone conclusion and we will be considering a range of options."
John Coyle, managing director of Standard Bank in the Isle of Man, said consolidation was a growing trend in the onshore arena and the offshore industry was following that trend. He said: "The rationale that drives offshore consolidation is the same rationale behind that of the high street players.
"Either way it's important to remember that the offshore story remains one of growth with deposits continuing to rise."
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