Anglo Irish Bank has agreed to sell its Austrian private banking subsidiary to Swiss financial services group Valartis for an undisclosed sum.
The Vienna-based bank contributed to around 1 per cent of Anglo's half-year pre-tax profits of €667 million, announced in March, and holds net assets of €76 million.
Anglo Irish Bank said the sale, which is expected to be completed within three months, would boost its capital base and is consistent with its "strategic focus on its core secured lending businesses in Ireland, the UK and the US."
The sale follows the bank's sale of its Isle of Man trust operations in 2006 and of its Swiss private bank earlier this year.
Chief executive David Drumm said: "Anglo has developed a successful international private banking business in Austria with a particular focus on central and eastern Europe.
He said: "Valartis will be an excellent partner to the business, its clients and employees, bringing complementary product and services expertise while ensuring continuity of outstanding client service."
"Separately, we are retaining our long established Austrian branch and will further invest in its significant deposit gathering and wider treasury activities," he added.
Following the transaction, the Vienna bank will be renamed Valartis Bank Austria, Valartis said in a statement today.
Valartis said the acquisition substantially expanded its wealth management activities and increased the group's assets under management to a total of 5.5 billion swiss francs.
"The earnings capacity of Valartis, based on the three pillars of asset management, wealth management and investment banking, will therefore be put on a broader base and be strengthened sustainably," Valartis said.