Anglo Irish Bank has become the second financial institution to sell a Swiss private banking business in just over a month, amid increased mergers and acquisition activity in the sector.

Swiss wealth manager St Galler Kantonalbank has bought Anglo Irish Bank's Geneva-based private banking business just over a month after Swiss Life sold its own private banking operation, Banca del Gottardo, to Italian financial group Generali for Sfr1.7bn (€1bn).