Hamburg-based Berenberg bank considers expanding into the UK

Berenberg, an old-guard German bank headquartered in Hamburg, recently outlined its expansion plans, not only for its native Germany but also for the UK. The 433-year-old bank’s recent financial results published earlier today revealed that one of its goals also includes increasing staff number and establishing new regional footholds.

Berenberg plans to expand its UK activities

Berenberg has been eyeing the UK lately, and it noticed that the ongoing industry consolidation in the country could serve as an opportunity. Up to this point, the bank managed to grow its brokering client base to around 70 companies, and it continues its investments in the country, which it views as a key pillar of its investment bank.

In the last several years, it also saw a sharp rise of specialist staff numbers in the UK, which went from 30 in 2020 to 60 in 2023. Furthermore, the bank’s Managing Partner, David Mortlock, said that there is a significant opportunity in UK investment banking, especially with industry consolidation taking hold.

This positive outlook in the market in the UK represents a notable shift from 2022, when Bernsberg decided to reduce its workforce in the UK by 85 employees. It went through two separate rounds of layoffs to achieve this. Then, in 2023, it eliminated another 20 positions in the US, which happened at the same time when it closed its mid-market research department.

Berenberg to boost its Munich team to stay competitive

Regarding its plans for Germany, Berenberg plans to increase the headcount from 10 to 40 employees in its Munich office alone. Commenting on the buildout, the bank noted that the idea is to create a strong foothold in the southern region of the country.

All of the areas covered by Munich will also encompass private banking, corporate clients, institutional investors, structured finance, portfolio management, and investment banking. In doing this, Berenberg will join other financial services companies that are expanding in the southern regions of Germany, including Goldman Sachs, Morgan Stanley, Perella Weinberg, and Lazard.

All of these companies already maintain established offices in the area, and Berenberg is no exception.

The bank also saw increased net profits which reached 55.4 million EUR despite the fact that it is seeing historically low capital market activity. The bank also recorded total assets under management at 38 billion EUR, which is almost flat compared to figures from 2022.

It is also worth noting that, even though it closed its Wealth and Asset Management division in London in late 2022, the bank’s assets under management stayed fairly stable at 38 billion EUR, as mentioned.