Specialist lender and savings provider Hampshire Trust Bank is to acquire Wesleyan Bank, the savings and ISA arm of Wesleyan Assurance Society.

Wesleyan Assurance, a 180-year-old financial services mutual, decided to sell off its banking arm after a strategic review.

The acquisition will see 115 employees of Wesleyan Bank transfer to Hampshire Trust Bank (HTB) although they will continue to work from Wesleyan Bank’s existing offices.

Wesleyan Assurance offers a range of savings, investment, insurance and mortgage products and also has a specialist financial advice arm working with doctors, dentists and teachers. Its financial consultants work on a restricted advice basis. Lump sum advice fees typically range from 1% to 3% and ongoing advice fees are 0.5% 

The deal, for an undisclosed sum, is due to complete in the coming months subject to regulatory approval.

The combined Hampshire-Wesleyan Bank business will be led by HTB CEO Matthew Wyles with Tim Blackwell as CFO. 

Hampshire Trust Bank offers a range of lending and savings products including cash ISAs.

Matthew Wyles, HTB’s chief executive, said: “HTB’s growth strategy has always included an intention to supplement our development through acquisition when the right opportunity presented itself.

"We are very pleased to have agreed this deal with Wesleyan Assurance Society and we are excited about the added scale and momentum which this transaction will bring to HTB’s existing dynamic franchise. HTB delivered a very strong trading performance during the first half of 2021 and we look to the future with great confidence.”

Wesleyan group chief executive Mario Mazzocchi said: “Wesleyan Bank has been enjoying considerable success in recent years as it focuses on supporting its professional and SME customers with medium-term asset finance and longer-term secured loans. 

“Following a strategic review, we found the growth opportunities ahead of the bank were different to those of our core business, which will continue to focus on the specialist financial needs of doctors, dentists and teachers. Seeking new ownership for the bank provides positive outcomes for both businesses, their customers as well as our members and makes strategic sense for all parties.”