Kaupthing exits asset finance and commodity trade finance businesses

Source: Kaupthing Bank

As the final step in the restructuring of the UK business following Kaupthing's acquisition of Singer & Friedlander in 2005, Kaupthing Singer & Friedlander announces that it will be exiting its Asset Finance and Commodity Trade Finance businesses and that it has made structural changes within its Banking Division.

Following the restructuring Kaupthing Singer & Friedlander will be purely focused on providing integrated financial services to small and medium sized businesses and high net worth individuals through its five core business segments; Banking, Investment Banking Treasury, Capital Markets and Asset Management & Private Banking.

Asset Finance (Corporate Asset Finance, Healthcare Asset Finance and Insurance Premium Finance) and Commodity Trade Finance are non-core to Kaupthing Singer & Friedlander and have been operating largely on a standalone basis. Exiting these businesses will have a positive impact on the cost base and will free up liquidity in excess of GBP 1 billion (EUR 1,3 billion) in 2008. The capital released will be reinvested to further grow the core UK business. After the divestment there is no longer any significant asset finance business within the Kaupthing group.

In addition Kaupthing Singer & Friedlander has transferred the Structured Finance division from Banking into the Acquisition and Leveraged Finance division within Investment Banking. Kaupthing Singer & Friedlander will also close its Property and Corporate Banking activities in Leeds and Manchester and move them to Birmingham and London.

Ármann Thorvaldsson, CEO of Kaupthing Singer & Friedlander "These changes are the final steps in the restructuring process following our acquisition of Singer and Friedlander. We are now focusing our resources and capital on the core businesses in the UK. I would like to thank the management and staff of the businesses we are exiting for their contribution to the success we have experienced in our operation here in the UK."

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