The Bank of Butterfield is to close its London private bank.

The bank said that the British-based Butterfield Private Bank’s “scale and scope were not consistent with Butterfield Group’s growth strategy”.

A spokesman for the firm said that it would maintain its mortgage-lending business in the UK if approved by regulators.

The bank added: “The Butterfield Group’s growth strategy is focused on markets where it has a substantial presence and can achieve economies of scale.

“As evidenced by recent acquisitions in Guernsey, the Cayman Islands and Bermuda, the group will deploy its resources to invest in community banking and wealth management in high-quality offshore jurisdictions.”

The group operated deposit taking and investment management in Britain and said it was fully funded to return all investments and cash balances to clients.

The spokesman added: “Clients will be contacted directly by Butterfield Private Bank with respect to the transfer of their deposits and investments to other financial institutions or other entities within the Butterfield Group as appropriate.”