Present in more than two hundred years retail banking, Bank of New York is poised to come out of this activity. Founded in 1784, the oldest American Bank will transfer its 360 agencies, located in New York City and its region, JPMorgan Chase. In exchange for its network, valued from $ 3.65 billion, it acquires the trust ("corporate trust") of JPMorgan Chase Bank estimated at 3.5 billion and get a balance of $ 150 million. The operation must be concluded on October 1, 2006.
The reasons for this withdrawal "Retail banking was more a small share of our business, and it posted growth rates of 0 to 5 per year, that we have estimated too low", explains the "Echos" Gerald Hassell, President since 1998. Its management therefore decided to specialize even more the Bank in the conservation and treatment of third-party titles. An activity that grows from 10 to 15 per year, according to Gerald Hassell, worn by the global economic growth, and will represent 90 of the income of Bank of New York, with cash management, once transferred its retail banking. In the conservation of titles stricto sensu ("custody"), Bank of New York is number two world behind JPMorgan Chase, with 11,000 billion in assets.
It is world number one, however, on all the services associated with the conservation and processing of securities ("securities servicing"), said Gerald Hassell. This includes all trades which revolve around conservation securities, shares, and money from other banks, and insurance companies, pension funds and companies. "We are the only ones to be really specialized in this activity, little-known and visible, says the President of Bank of New York." We are a little Plumbers of finance. With us, financial piping works, there is still money available!
Towards an acquisition in Europe
This refocusing towards the conservation of titles is the fruit of years of assignments of activity of bank card in 1997 to retail banking this year and acquisitions in all conservation and processing of securities trades. The integration of the conservation activities of securities from JP Morgan and Bank of America at the purchase for Pershing $ 2 billion in 1996, specializing in compensation, in 2003, and the trust of JPMorgan Chase in 2006. The latter transaction, Bank of New York becomes world number one in the store of trust.
Is the movement of refocusing completed Bank of New York is still present in the management of assets and private bank which represent 10 of its revenues. However, "We want to stay in these professions, and even there grow," said Gerald Hassell.
His priority now is to accelerate the development of Bank of New York, in the conservation of titles, in Europe. A strong growth market, worn by the growth of international trade, and where the insurance companies and pension funds should play an increasingly important role, merits of deregulation social systems, says Gerald Hassell. Bank of New York already has 22 of its income on the Continent. It has 5,000 employees, based particularly in its operational centres in London, Manchester, Brussels and Dublin. To develop, it was multiplying partnerships, such as Niue, in France, with Natexis in 2005 Natexis proposing the conservation service of securities of the U.S. to its customers, and vice versa or, in Germany, with BHF. "To continue to grow in Europe, we build partnerships, but also acquisitions", said Gerald Hassell.
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