AIB sells Jersey subsidiary

AIB has confirmed it is to sell AIB JerseyTrust to the Capita Group for £12.5 million (€14.3 million).

Today's announcement comes in the same week when AIB confirmed plans to sell its outsourcing operation AIB International Financial Services to Capita for £29 million (€33.1 million).

Headquartered in Jersey, the AIB JerseyTrust provides trust services to private and corporate clients. It made an operating profit for the 12 months ended 31st December 2010, of approximately £2 million on turnover of £7.7 million.

Capita is the UK's biggest outsourcing companies. Headquartered in London and listed on the London Stock Exchange, the group was formed in 1984 as a division of the Chartered Institute of Public Finance and Accountancy (CIPFA). It was later subjected to a management buy-out in 1987.

On completion of the deal AIB JerseyTrust's business will integrate into Capita Fiduciary Group, which has its head office in Jersey, employing approximately 160 members of staff there, with a further 150 across other locations in London, Dublin, The Netherlands and Luxembourg.

The deal is subject to approval by the Jersey Financial Services Commission and the Jersey Competition Regulatory Authority.

"The acquisition is a natural fit for Capita, in terms of our client base, client services and professional staff," said Capita chief executive Paul Pindar. "The deal also further demonstrates Capita's commitment to, and investment in, Jersey and the financial services industry. The increased capacity will help ensure our continued growth in this sector and we expect the acquisition to bring clear benefits to both new and existing customers. We look forward to welcoming the team to Capita."