Following the announcement of a UK merger, Skipton Guernsey (SGL) has confirmed plans to merge with Scarborough Channel Islands (SCIL).
The enlarged Guernsey deposit taker will be called Skipton Guernsey Ltd. Existing customers of both entities will be offered similar or better terms on their current savings and mortgage accounts, it said.
Subject to local board and regulatory approval, the businesses are expected to be fully integrated in 2009, until when, both businesses will use their respective offices. No compulsory staff redundancies are anticipated as a consequence of this.
Alan Bougourd, managing director of Skipton Guernsey, said the merger is good news for both businesses’ customers.
“Both our companies are well run, profitable and well capitalised, meaning we both have substantial reserves, which is an essential strength in the current turbulent markets,” he commented.
He expects the parent, Skipton Building Society, will be the fifth-largest building society in the UK with assets over £16bn and over 860,000 members following the merger. The parent will continue to protect customers’ deposits, so the Guernsey firm will be operating from a position of strength.
“Together with the proposed introduction of a Guernsey depositor compensation scheme similar to that operated in the UK, guaranteeing the first £50,000 of each individual’s savings, we are confident that savers with Skipton Guernsey can look forward to a safe and rewarding future,” said Bougourd.
Tony Burdin, managing director of SCIL, said: “This is a great opportunity to combine the significant strengths and capabilities of both businesses and we are confident that the enlarged bank will enable us to offer an even better range of products and services to both new and existing customers.”
Head of UK intermediary distribution
Latest news and analysis
'Cherry-pick' best software
Revisit sector structure