FNB eyes offshore banking market
FIRST National Bank has moved to capture a bigger slice of the offshore banking market.
The FirstRand subsidiary will open its first Channel Islands branch in 2015 in the tax haven of Guernsey.
When approached by Business Day, FNB confirmed it plans to open the branch with Stuart Talbot, formerly a divisional manager at RMB private bank, at the helm.
Mr Talbot’s LinkedIn profile says he has been labouring on a “special project” in Guernsey for the past nine months.
Its birth is now imminent.
The Guernsey Financial Services Commission (GFSC) issued a deposit-taking licence to FirstRand Bank Limited Guernsey branch on Friday 17 October.
Business Day asked FNB whether the primary aim of the branch was to offer their wealthy clients a tax-efficient means of moving their money abroad.
James Fowle, CEO, Premium and Business Core Banking, at FNB said: “FNB can confirm that, as a subsidiary of FirstRand Bank Limited, it has been awarded a deposit-taking banking licence, to operate in Guernsey.
“The Bank will operate as FNB Channel Islands, offering a transactional offshore banking option for its clients. This further adds to FirstRand’s offshore services through Ashburton, its existing offshore asset management business.”
Imara SP Reid’s head of research Stephen Meintjes said it was a “fair inference” to suggest FNB was looking to capture a bigger slice of the deposits wealthy South Africans are making abroad.
“It’s just rolling out their indicated strategy,” he said.
“It does seem to go pretty well with Ashburton and they emphasise their intent to expand Ashburton and related activities so it’s in line with that,” Mr Meintjes noted.
He added that “asset/wealth management, that’s the area they want to expand in and it (the Guernsey branch) is a useful step in that direction”.
FNB would not say what the minimum deposit for getting an offshore account at their Guernsey branch would be, nor would they say exactly when it would begin operating in 2015.
“We will only be in a position to formally announce the details of the offshore offer once we have formally launched,” said Mr Fowle.
But, an FNB staffer indicated their offer would be aimed at premium clients.
FNB’s competitors, such as Investec, Nedbank and Standard Bank, all have some sort of presence in the Channel Islands.
Fiona Le Poidevin, CE of Guernsey Finance — the promotional agency for the Island’s finance industry, said in a statement: “FirstRand is a welcome addition to the Guernsey banking market.
“Guernsey has enjoyed strong business links with South Africa for some time and this development is further evidence of that relationship. FirstRand has had a long-standing fiduciary presence in the Island and is therefore well aware of the infrastructure and expertise available in Guernsey.”
GFSC’s most recent figures show that the total value of deposits held by banks in Guernsey stood at £77.4bn at the end of June 2014.
