By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Citigroup yesterday said it does “not intend” for there to be any job losses at its Bahamian Citi Trust subsidiary from selling that unit’s worldwide operations to rival financial services provider, JTC.

The global financial institution, in a statement responding to Tribune Business inquiries, said “the majority of employees” at the Bahamian operation will transfer to JTC once the acquisition is completed and all necessary regulatory approvals obtained. No further information, such as the likely timeline for closing the deal and how many staff will be impacted, was provided.

Ida Liu, head of Citi Private Bank, in explaining the decision to sell, said: “The decision to sell our personal trust administration and fiduciary business allows us to focus our resources on areas that will create impact for our global clients and drive growth for our wealth business.

“We will continue to provide clients with leading investment management, wealth planning, lending and banking services, while JTC will provide the highest quality trustee and fiduciary services. We are confident our clients and colleagues will benefit from JTC’s singular focus on trust administration and we are pleased our clients will continue to work with the world-class trust administration team they’ve relied on at Citi Private Bank.

“We look forward to working together as we transition this part of our business.” Separately, in an e-mailed response to this newspaper’s questions, Citigroup said: “Re Citi staff, we do not intend for a reduction in headcount as a result of the transaction. The majority of employees will move to JTC.”

A JTC spokesperson, meanwhile, told Tribune Business: “As far as The Bahamas is concerned, the Citi Trust operation there is very much part of this acquisition, with the team there bringing additional expertise to JTC’s private client services division and playing an important role in delivering JTC’s growth strategy in The Bahamas, across the region and as part of the global business.

“JTC will also be seeking the necessary regulatory approvals etc in due course.” JTC, which first established its own physical office in The Bahamas, described the proposed purchase as “highly complementary” to its “existing footprint”. If the deal goes through, it will acquire a business that has a presence in The Bahamas and six other jurisdictions - New York, Delaware, South Dakota, Jersey, Singapore and Switzerland.

“It bolsters several of JTC’s key growth jurisdictions, and it will cement JTC’s position as the leading independent provider of global trust services,” JTC said in a statement. “Citi Trust provides a full suite of tailored trust solutions, operating from seven high quality trust jurisdictions.

“The total assets under administration serviced by Citi Trust is in excess of $70bn across over 2,000 ultra high net worth client relationships with an average tenure of 12-plus years. The acquisition brings with it an experienced senior management team with over 150 years of collective trust experience, supported by a skilled global employee base.”

Nigel Le Quesne, JTC’s chief executive, said: “Citi Trust is one of the most established and well-respected providers of trust services globally and we are delighted to have been chosen as the future custodian of its employees and clients. The acquisition is extremely complementary to JTC’s existing footprint.

“It is a transformational transaction for the group and our private client services division, increases our presence in key growth markets in the US, Europe and Asia, and brings further resilient annuity driven revenue to the group. We look forward to welcoming their highly experienced team to JTC, so that together we can capture the future growth opportunities that the global trust and administration market offers.”

JTC’s existing Bahamas office is based at Sterling Commons on Paradise Island, which is the former Hurricane Hole location that now features the Paradise Landing project. The group, which is headquartered in Jersey, says on its website: “The Bahamas has grown into an internationally-renowned financial jurisdiction, with areas of expertise covering fiduciary services, family office support and international trusts.

“It is tax neutral and has a strong position based on its modern infrastructure, expert workforce, robust financial legislation and its proximity to other key markets such as Cayman and the BVI.... With JTC also having offices in both Cayman and the BVI, our team of experts is well-established in the Caribbean market.

“Our comprehensive suite of services provided from The Bahamas includes local private trust company formation and administration; international business company formation and administration; assistance in establishing foundations and executive entities; as well as directorship, nominee shareholder and secretarial services; along with a variety of other professional services to global corporate and private clients.”