Anglo Irish buys foreign operations

Anglo Irish Bank has purchased the asset management and private banking services of Credit Lyonnais Bank in Austria for £10.1 million. The bank has also announced the acquisition of a corporate foreign exchange client portfolio from Hambros Bank in London and the investment and trust business of Mees Pierson in the Isle of Man. The total consideration for the two will be around £100,000, to be paid on a deferred basis. The acquisitions are in line with the bank's planned expansion into private banking.

The Credit Lyonnais Bank is based in Vienna and will be merged with Anglo Irish's deposit taking operation in the city. It has funds under management of approximately £100 million.

The two smaller acquisitions came on the market following a review of their operations. Anglo Irish Bank director, Mr Tiernan O'Mahoney, suggests the acquisitions have the potential to make a full-year contribution of up to £1.5 million to the bank.

"The Austrian acquisition will complement Anglo's existing business in Vienna, enhancing client services and adding to group profitability. The others are both small in the context of the bank but are important in terms of the bank's long-term strategy to develop our private banking and fund management activities."

Credit Lyonnais Bank employs 30 people who will transfer to work for Anglo Irish Bank. Last year, the bank recorded a loss of £400,000 due to a restructuring programme. It is now trading profitably.