Private banks are setting up offices in one of Germany’s major centres of wealth, the southern city of Stuttgart, according to the financial...

Private banks are setting up offices in one of Germany’s major centres of wealth, the southern city of Stuttgart, according to the financial daily, Frankfurter Allgemeine. Stuttgart and the surrounding area is the homeland of Germany’s mid-sized companies, or mittelstand, and a major centre of wealth generation. But the city’s inhabitants are known for their frugal characteristics, which are proving a challenge for private banks. “One does not become rich by the money which one spends,” according to an old adage from the region. The report said UBS and Credit Suisse have concentrated heavily in gaining a foothold in the southwest of Germany. Both banks have major offices in the city and last month Julius Baer said it was to open in the city at the beginning of next year. German private bank Sal Oppenheim has a major presence in the area, recruiting a major team of relationship managers from Dresdner Bank in Stuttgart, according to the report. Stuttgart private bank Ellwanger & Geiger, which probably has the best website address of any German private banks, with www.privatbank.de, has also increased its efforts in the local private banking market. Augsburg-based Fürst Fugger Privatbank opened an office in Stuttgart this summer. And Hamburg-based Berenberg Bank is also looking to establish a presence in Stuttgart. But the Frankfurter Allgemeine article quoted a local banker: “The potential is overrated”. He added: “The Stuttgart Mittelstandler (medium-sized business owner) puts his fortune into his enterprise and lives modestly. Or buys real estate.”