The Swiss-based Vontobel Group is to expand its business in Germany, consolidating its existent activities there into a newly established public company, Bank Vontobel Europe AG. The bank will also open a new branch in Hamburg - its fourth after Munich, Cologne and Frankfurt.

"The measures mark the start of the next stage in our strategic growth programme. With the full banking licence and our plans to establish a new legal entity, we are underscoring the importance of the German market for the Vontobel group. We aim to become the leading Swiss private bank in Germany," said Herbert Scheidt, the group’s chief executive officer.

Bank Vontobel Europe AG will have its headquarters in Munich and is to be a subsidiary of Vontobel Holding AG, which is listed on the SWX Swiss Exchange. The new company will have share capital of €50 million and employ around 50 members of staff. The bank's management board will include Dr Dirk Drechsler as managing director, Alois Ebner and Andreas Heinrichs.

"The Vontobel Group is unique in the German private banking market: it is under majority family ownership, thus guaranteeing stability and a long-term perspective” said Dr Drechsler, who also stated  his team has set the goal of reaching break-even in the next three years.

The Vontobel Group has advised wealthy German private clients from its Munich branch since 2002. With the opening of its new branch in Hamburg, the bank aims to strengthen its presence in Germany and to lay the structural foundations for further growth there.

The bank has conducted its business with institutional investors in Germany from its Frankfurt branch since 2002. The group has structured and issued financial products from its Frankfurt branch since 2004.

Vontobel has supplied brokerage services from its Cologne branch since 1999 and serves German institutional investors as a broker for the Swiss equity market.