Butterfield Bank has sold off businesses in Malta and Hong Kong as it aims to focus on fewer, key jurisdictions.

The bank announced yesterday that its trust, wealth management and advisory businesses in Hong Kong and its trust operation in Malta would be sold to Bentley Reid — the same organisation that sold the businesses to Butterfield three years ago.

As a result of the sale, in the third quarter Butterfield said it would take a charge of approximately $7.8 million, including a write-off of intangible assets of $4.2 million. The businesses being sold generated net income of $432,000 in the first half of 2010.

Butterfield chief executive officer Brad Kopp said: "As we work to return the bank to a position of stability and profitable growth, we have decided to focus our resources on a smaller number of key jurisdictions."

Following the sale, Butterfield still operates in seven jurisdictions of which by far its largest businesses are in Bermuda and the Cayman Islands. The other five are Guernsey, Switzerland, The Bahamas, Barbados and the UK.

In October 2007 Butterfield acquired the entire share capital of the Bentley Reid Group, a privately held international wealth management company with offices in Hong Kong, Malta and the United Kingdom. At the time those companies had nearly half-a-billion dollars under their discretionary management and around $2 billion in assets under advice and administration. Under the transaction announced yesterday, Nic Bentley, currently deputy chairman, Butterfield Private Office (HK) Ltd. and founder and previously chairman of the Bentley Reid Group, will reacquire the Malta and Hong Kong businesses which will operate under the Bentley Reid name.

The bank added that the former Bentley Reid operations in London have been integrated with Butterfield's private banking, asset management and family office businesses in the UK and have served to enhance the Group's wealth management offering in that jurisdiction. They are not affected by this transaction.

Rupert Bentley, who was CEO of Bentley Reid Group prior to its acquisition by Butterfield in 2007, will remain with Butterfield Bank (UK) Ltd. in London in his capacity as head of Asset Management. He will also join the Board of the new Bentley Reid Group. Butterfield Bank (UK) Limited will continue to manage investment portfolios for clients of the new Bentley Reid Group entities.

Mr. Kopp added: "We look forward to working with Nic Bentley and his team to provide continuity of client services and relationship management to our valued clientele in Hong Kong and Malta and leverage our successful asset management business in the UK run by Rupert Bentley."

As of June 30 this year, the breakdown in Butterfield's financial statements showed the Hong Kong businesses as having total assets of $5.5 million, down $4.7 million since the start of the year, while Malta operation's total assets were $3.6 million, up $0.7 million since the end of 2009.