PRESS RELEASES 2011
DZ BANK and WGZ BANK agree to merge their Luxembourg units
DZ BANK AG and WGZ BANK AG have agreed to merge their Luxembourg private banking units: The shareholders of WGZ BANK Luxembourg S.A. and DZ PRIVATBANK S.A. voted in favour of the merger today at the general meetings of the two companies in Luxembourg. In September of last year the parent companies had already signed a letter of intent.
The name of the new unit is DZ PRIVATBANK. Chief Executive Officer is Dr. Stefan Schwab who is already in charge of the activities of DZ PB S.A. – Holding of the DZ PRIVATBANK Group in Luxembourg. His deputies are Dr. Bernhard Früh and Andreas Neugebauer. The general meetings were followed by the inaugural meeting of the supervisory board of DZ PRIVATBANK, the members of which are mostly representatives of the local cooperative banks. The Chairman is Lars Hille, Member of the Board of Managing Directors of DZ BANK. His deputy is Karl-Heinz Moll, Member of the Board of Managing Directors of WGZ BANK.
In the course of the transaction, DZ PB S.A. will be merged with DZ PRIVATBANK S.A. while at the same time DZ PRIVATBANK S.A. is merged with WGZ BANK Luxembourg S.A. WGZ BANK AG will also be contributing its 20 percent share interest in DZ PRIVATBANK (Schweiz) AG into DZ PRIVATBANK S.A.
In future, DZ PRIVATBANK will be responsible for more than 71,000 private banking clients, managing assets totalling some EUR 14.4 billion. Its total assets will amount to some EUR 18 billion. The number of employees will rise as a result of the merger to around 1,000. The new unit will be responsible for the entire private banking activities of DZ BANK and WGZ BANK and will be managed as a joint specialized service provider within the cooperative sector similar to Union Investment, R+V and Bausparkasse Schwäbisch Hall.
"This merger represents the consistent continuation of our joint market initiative in private banking: The merger bundles together competences and strengthens the position of the cooperative financial network in this strongly growing market“, claims Werner Böhnke, Chief Executive Officer of WGZ BANK. "The local cooperative banks and in particular their private banking clients will enjoy the benefits of a nationwide single, decentralized market presence and profit from high-quality solution concepts“, adds Wolfgang Kirsch, Chief Executive Officer of DZ BANK.
The new unit will use the cooperative service brand VR-PrivateBanking in private banking transactions, operating as partner of the local cooperative banks and in strict accordance with the principle of subsidiarity, i.e. supporting the individual cooperative banks in their private banking activities. An advisory council consisting of bank representatives of the two central banks will be responsible for ensuring that the alignment of the new unit's business strategy and policy encompasses the close integration of the local cooperative banks.
In addition to the Hanover, Munich and Stuttgart branches DZ PRIVATBANK will also open a new branch in Dusseldorf in the fourth quarter 2011 into which the private banking business of WGZ BANK AG will be integrated. There are plans for more new branches of DZ PRIVATBANK to be opened in Germany.
Martin Roth, Head of Communication & Marketing