Berenberg Eyes Expansion in The UK, Germany to Capitalize on Market Opportunities

by Damian Chmiel
  • The old-guard German bank plans to grow its workforce and establish new offices.
  • Despite low market activity, Berenberg's net profits remained steady with slight growth.
United kingdom, london
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The Hamburg-based private bank Berenberg outlined expansion plans in both the UK and Germany, according to financial results published today (Monday). The 433-year-old bank aims to increase staff numbers and establish new regional footholds.

UK Investment Banking Buildout

Berenberg views industry consolidation in UK broking as an opportunity. The bank has grown its broking client base to around 70 firms and continues investing in the country, cited as a "key pillar" of its investment bank. Specialist staff numbers in the UK grew from 30 in 2020 to 60 in 2023.

Berenberg's Managing Partner, David Mortlock, stated: "We see a significant opportunity in UK investment banking, particularly given industry consolidation is now taking hold."

The positive outlook on the UK marks a shift from 2022, during which Berenberg reduced its workforce by 85 in the country through two separate layoffs. Additionally, last year saw the bank eliminating approximately 20 positions in the US, coinciding with the closure of its mid-market research department.

Berenberg Targets Munich for German Growth

In Germany, Berenberg intends to boost the headcount at its Munich office from 10 to 40 employees. The buildout aims to create a "strong foothold in southern Germany," according to the company statement. Areas covered by Munich will encompass private banking, institutional investors, corporate clients, portfolio management, structured finance, and investment banking.

Berenberg joins other financial services firms in expanding to the south, including Morgan Stanley, Goldman Sachs, Lazard, and Perella Weinberg, which have all established offices there.

Financial Results for 2023

Despite "historically low capital markets activity," Berenberg increased net profits slightly to €55.4 million, comparable to its 2022 result. Total assets under management remained almost flat at around €38 billion.

Despite the closure of the Wealth and Asset Management division in London at the end of 2022, assets under management stayed almost stable at approximately 38 billion euros.

The Hamburg-based private bank Berenberg outlined expansion plans in both the UK and Germany, according to financial results published today (Monday). The 433-year-old bank aims to increase staff numbers and establish new regional footholds.

UK Investment Banking Buildout

Berenberg views industry consolidation in UK broking as an opportunity. The bank has grown its broking client base to around 70 firms and continues investing in the country, cited as a "key pillar" of its investment bank. Specialist staff numbers in the UK grew from 30 in 2020 to 60 in 2023.

Berenberg's Managing Partner, David Mortlock, stated: "We see a significant opportunity in UK investment banking, particularly given industry consolidation is now taking hold."

The positive outlook on the UK marks a shift from 2022, during which Berenberg reduced its workforce by 85 in the country through two separate layoffs. Additionally, last year saw the bank eliminating approximately 20 positions in the US, coinciding with the closure of its mid-market research department.

Berenberg Targets Munich for German Growth

In Germany, Berenberg intends to boost the headcount at its Munich office from 10 to 40 employees. The buildout aims to create a "strong foothold in southern Germany," according to the company statement. Areas covered by Munich will encompass private banking, institutional investors, corporate clients, portfolio management, structured finance, and investment banking.

Berenberg joins other financial services firms in expanding to the south, including Morgan Stanley, Goldman Sachs, Lazard, and Perella Weinberg, which have all established offices there.

Financial Results for 2023

Despite "historically low capital markets activity," Berenberg increased net profits slightly to €55.4 million, comparable to its 2022 result. Total assets under management remained almost flat at around €38 billion.

Despite the closure of the Wealth and Asset Management division in London at the end of 2022, assets under management stayed almost stable at approximately 38 billion euros.

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