Hambros Bank
Hambros Bank, was a
British bank based in
London. It was established there in
1839 by the
Danish merchant and banker
Carl Joachim Hambro as
C. J. Hambro & Son. The bank was a specialist in Anglo-Scandinavian business with expertise in trade finance and
investment banking, and was the sole banker to the
Scandinavian kingdoms for many years. The Bank was sold in 1998, and today survives only in the name of the private banking division of the
French group
Société Générale, which is called
SG Hambros Bank and Trust Company Ltd.
After merging with the
British Bank of Northern Commerce (owned by
Enskilda Banken and a number of Scandinavian savings banks) in
1921 the name was changed to Hambros Bank, and the firm expanded. As a result, in
1926 a bigger head office was constructed at 41 Bishopsgate, where the bank remainded until
1988. The
1930 depression affected the bank's international business and it concentrated on domestic lending and Scandinavia. During
World War II,
Sir Charles Hambro raised finance for the exile Norwegian government and was also the head of the SOE (the
Special Operations Executive), running a network of agents in Europe, including
Operation Gunnerside, the sabotage of the
Rjukan heavy water factory in Norway (featured in the film "
The Heroes of Telemark"). He had good connections to the Swedish
Wallenberg family and its
Stockholms Enskilda Bank, eventually marrying the widow of
Marcus Wallenberg.
After World War II, Hambros became also known as the 'diamond bank' with its thriving activity in financing the
diamond industry and its trade. Hambros was one of the top three banks in the
Euromarket by the mid 1960s. In 1967 the private banking and trust operations were expanded offshore and new offices were opened in
Jersey and
Guernsey to take advantage of the offshore tax benefits.The 1970s marked Hambros' expansion into new areas of financial services - in particular, asset management, investment management for third parties,
investment funds and insurance. An offshore private banking and trust operation was established in 1981 in
Gibraltar to complement the offices in London, Jersey and Guernsey.
In the mid 1970's the Bank was badly hit by the shipping crises and repeatedly hindered by its relationship with the Norwegian magnate
Hilmar Reksten. Under the direction of the Company Secretary
Charles Perrin, the Bank defended itself against litigation from his Trustees in Bankruptcy and the Norwegian Government on and off for nearly 25 years, including two substantial out of court settlements, both in the Bank's disfavour. Altogether, the affairs of Hilmar Reksten was a disaster for Hambros Bank, both financially and in terms of wasted time and opportunities.
In 1986, the Hambro Trust, the majority shareholder in the bank, was dissolved and the family went their separate ways. Sir Charles' son, Charles Hambro (with his children Clare, Charles and Alex) stayed with the bank and
Jocelyn Hambro (with his children Rupert, Richard and James) set up
JO Hambro and Sons. This resulted in substantially less Hambro family influence in the banking group and promotion of
Chips Keswick to Chairman of the Bank and Charles Perrin (of Reksten fame) to Vice Chairman and later
CEO. Jocelyn Hambro and his sons were very successful in their new businesses, more than making up for the "loss" of the bank.
By the end of the decade Hambros had 1,400 staff, 900 of whom were based at 41 Tower Hill in London, where the head office is still based today. In February 1998 the Hambros PLC board recommended a sale of Hambors Bank Ltd to the
French bank
Société Générale, which the majority of the shareholders accepted. Hambros PLC, including the private equity and investment side, was later sold to
Investec, a
South African bank. In November 1998, the Hambros core private banking activities were renamed SG Hambros Bank & Trust Limited. As well as the London, Jersey, Guernsey and Gibraltar operations, a subsidiary of
Coutts Bank in the
Bahamas also became part of the SG Hambros Group.
Lord Charles Hambro of Dixton and Dumbleton (Charles Eric Alexander Hambro) was the last family Chairman of the Group. In 1997, on the retirement of Lord Hambro, his position was taken over by Sir Chips Keswick, who remained in the chair as the last Chairman until the sale of the bank. He was the prime promotor of the Société Générale takeover together with his Vice Chairmen Charles Perrin, who was the last CEO of Hambros Bank Ltd, and
Michael Sorkin. Charles Hambro Jr substantially developed and was the Chairman of the Private Banking business until 1998. Lord Hambro was also treasurer of the
Conservative Party during the early 1990s. Lord Hambro died at the age of 72 on the November 7, 2003.
Several boutiques and spin-offs originated from or arose out of the ashes of Hambros Banking Group, including JO Hambro and Sons (Jocelyn Hambro and his sons), Hambro Magan Corporate Finance (JO Hambro and Mr Magan), JO Hambro Investment Management (Rupert, Richard and James Hambro), Rupert Hambro & Partners, Firecrest Hambro (Charles Edward Hambro Jr),
EC Hambro Rabben & Partners (Clare Hambro), Duke Street Capital (Edmund Truell, ex Hambro Group Investments), Star Capital Partners (Tony Mallin, ex Vice Chairman of Hambros Bank), and
Getty Images (Paul Getty/Jonathan Klein, both ex Hambros Bank Corporate Finance Directors), to mention a few.
Wiltons Restaurant, of Jermyn Street, London, near St James' (owned by Richard Hambro) is still the favourite wateringhole for ex-Hambro Directors/Employees, their families, clients and friends.
