03.02.2010Berenberg Bank strengthens ist status as an independent private bank

• Personally liable partners and family will buy back the share held by NORD/LB (25%)

• At 58%, their share will exceed the 50% threshold for the first time since 1960

Hamburg/Hanover. Berenberg Bank, established in 1590, will further strengthen its position among the owner-managed private banks. “Independence is key for a private bank. We are therefore delighted that the personally liable partners and the family will have the possibility to purchase the share hitherto held by NORD/LB Norddeutsche Landesbank,” says Dr Hans-Walter Peters, speaker of the personally liable partners of Berenberg Bank.

“Private banks have experienced a renaissance for some time now. Their independent advice is much sought after, not only since the financial crisis,” says Peters. Berenberg has managed to record highly stable growth in the last few years: in 2009 alone, Germany’s oldest private bank succeeded in acquiring some 1,000 new clients. Assets under management more than doubled in the last five years (2004: 10.5 billion euro; 2009: 21.9 billion euro), the number of employees rose to 894 from 490 in the same period.

The last reported net profit amounted to 47 million euro even in the year of crisis, corresponding to a return on equity of 37.5%. The result for 2009 will be published in mid-February; it will exceed the result achieved in 2008. The soundness of Berenberg Group is also underlined by a core capital ratio of 13.1% and a solvability ratio of 16.5% (end of 2009).

“As a private bank managed by personally liable partners, we have always paid particular attention to managing risk. Our motto ‘conserving and increasing value’ has helped us a lot in the financial crisis, so we did not have to adjust our risk strategy of many years even in the crisis,” explains Peters. Berenberg’s clear focus is on independent advice and service for its clients. “We have a well-functioning business model and a highly motivated team that makes every effort every day to perform high-class services for our clients.” Numerous awards are evidence of the fact that they succeed in doing so, like the highest score in the ‘Elite of asset managers 2010’ ranking, regular excellent results of the Investment Banking division, e.g. in the Thomson Extel Survey, or the decoration as one of the most innovative private banking addresses worldwide at the Global Private Banking Awards (“The Banker”).

Berenberg Bank is active in the business segments of Private Banking, Investment Banking, Asset Management and Commercial Banking. Apart from the Hamburg-based head office, the bank is present at eight other locations in Germany as well as at six cities abroad.

Apart from the family and the personally liable partners (in the future 58%), the Reemtsma family (15%, since 1982), Fürst Fürstenberg (15%; since 1987) and Belgian Compagnie du Bois Sauvage (12%; since 2001) hold shares in Berenberg Bank. NORD/LB, which is now leaving the group of partners, was a partner since 1973. No information about the agreed purchase price was given by either side.

 

 

 

More information you will find here. 

 

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