DZ BANK and WGZ BANK pool their private banking operations

In 2011 DZ BANK and WGZ BANK are to pool their entire private banking businesses as well as supplementary business segments such as Fund Services and Foreign Currency Lending in a new business unit. To this end, the Boards of Managing Directors of both banks have signed a corresponding letter of intent. The new unit is to go under the name DZ PRIVATBANK S.A.

The private banking market in Germany offers the Cooperative Financial Services Network attractive growth potential. The joint step paves the way towards a better and more sustainable exploitation of this potential. Bundling at the organisational level in a manner that is oriented to the market and setting up joint operations with efficient structures create the optimum prerequisites for this. The two banks will contribute a high level of excellence and experience in private banking to the new business unit. This is a further logical step in setting the stage for the cooperative organisation’s long-term future.

The integration creates the new business unit DZ PRIVATBANK S.A. with:

Aggregate total assets of around EUR 17bn
More than EUR 12bn of assets under management
Locations in Luxembourg, Switzerland and Singapore as well as in Germany
A nation-wide market identity in Germany
Around 1,000 employees

The main key points of the letter of intent are:

The new business unit is to be created by merging the Luxembourg-based units of DZ BANK and WGZ BANK as well as DZ PRIVATBANK (Schweiz) AG. In addition, WGZ BANK AG’s private banking operations are to be incorporated in the new business unit in the course of 2011.
The shareholders in the new business unit are DZ BANK and WGZ BANK as well as cooperative banks which already hold shares.
The new unit will operate in the private banking segment as a partner of the local banks under the cooperative flagship brand VR-PrivateBanking and in strict accordance with the principle of decentralisation, i.e. it will support the local cooperative banks in their private banking activities.
The new business unit is responsible for the entire combined private banking operations of DZ BANK and WGZ BANK and will be run as a joint, subsidiary cooperative specialised service provider on a par with Union Investment, R+V and Bausparkasse Schwäbisch Hall.
The future management of the new unit is made up of managers from the management teams of each of the two banks. CEO will be Dr. Stefan Schwab, who already manages the activities of DZ PB S.A. – holding company of DZ PRIVATBANK Group in Luxembourg. His deputies will be Dr. Bernhard Früh and Andreas Neugebauer.
An Advisory Council, which is to be made up of bank representatives from the business area of each of the two central institutes, will ensure the early and close involvement of the local cooperative banks in the new unit’s business strategy and policy.
The merger should be complete by mid-2011.

Werner Böhnke, CEO at WGZ BANK: "By merging their private banking activities, DZ BANK and WGZ BANK jointly with the local cooperative banks will further improve the opportunities in this business segment for the Cooperative Financial Services Network as a whole." Wolfgang Kirsch, CEO of DZ BANK: "We are thus creating ideal prerequisites for the further expansion our already good position in the German private banking market and for jointly and successfully furthering our Private Banking market initiative."



Martin Roth, Head of Communication & Marketing
Tel.: +49-69-7447-42750