European wealth scene with the merger of Commerzbank and Dresdner
Bank, a tie-up which should allow the two to compete more
effectively against traditional German banking leader Deutsche
Bank.
Dresdner, including its London-based Kleinwort Benson arm, has €127
billion ($180 billion) of client assets under management while
Commerz has €28 billion, as of end-2007.
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Their combined €155 billion makes them a top 15 global private
banking player, but still remaining behind Deutsche Bank with its
ranking as the 8th-largest global wealth manager with €195
billion.
While Dresdner, owned up to now by insurer Allianz, has
significantly more private banking business than Commerz, the
latter is a major banker to small and medium-sized German
Mittelstand companies – potentially a significant source of private
banking income.
“The two banks complement each other in the segment of high net
worth individuals. Dresdner Bank is very strong in this segment,”
Allianz said, in a statement announcing the merger.
“This will help the new bank minimise the gap to the market leader
and establish its position as number two in Germany in this
market.
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By GlobalData“Dresdner Bank has recently invested heavily in boosting its
national and international presence, an asset the new bank will
benefit from.”
Kleinwort Benson, a long-standing UK banking brand, is likely to
keep its name for the time being when it is absorbed in the merging
group.
Its chief executive Robert Taylor said he did not expect to have to
cut jobs at his wealth management business, as Commerzbank’s own
operations are much smaller.
“Private wealth is a core part of the Commerzbank strategy and we
are part of a different reporting line from the investment bank,”
he declared.
“Commerzbank do have a private bank but by acquiring the Dresdner
private bank side, it will be increasing its size by about
four-and-a-half times.”
