IFG pays €10m for bank’s trust subsidiary

FINANCIAL services firm IFG Group has paid out €10 million for a subsidiary of the Bank of Scotland.

IFG yesterday announced that it had bought Bank of Scotland Trust Company (International) Limited, which is based in Jersey.

IFG said BofS Trust provides trust and company administration services, primarily for British and European clients, and has some 269 companies, trusts and other entities under administration. It said these clients have assets of close to €500m.

The business of BofS Trust will be integrated into IFG’s existing Jersey trust activities and will operate under its International Trustee and Corporate Services division, consolidating the group’s position as one of the leading independent offshore corporate service providers, IFG said in a statement.

The company added that BofS Trust’s strength in British and European market complements the existing IFG international division’s business, which is particularly strong in the North American and Far Eastern markets.

The takeover should immediately add to IFG’s profits. According to the latest results for BofS Trust, for the year ended December 24, 2004, turnover was just under €2m and profits before tax were €970,616.

Shares in Dublin-based IFG were down 2.1% yesterday at €1.40, though they have nearly doubled this year.

In September, IFG reported first half profit of €4.4m on turnover of €42.5m. Both were down on the previous year.