Banks in Germany

Overview of Banks in Germany

The best part of the German banking system is its stability. Two factors set them apart from other banks of the world –

  • Firstly, the resilience of the economy in overcoming any challenge, and
  • Secondly, meager unemployment across the nation (below 5% as per the last report in August 2016)

One of the most pressing challenges as per Moody’s report is its low-yield environment. For that Germany has built around a solid operating system based on which the German banking system has been performing quite well.

However, there’s another challenge that the German banking system needs to deal with and that is continuous pressure on earning more along with a very high-cost base. Despite all these challenges, it’s expected that German banks would remain sound in capital base and liquidity in the years to come.

Structure of Banks in Germany

There are a lot many banks in Germany, much more than any country in Europe. In Germany, there are around 1800 banks, 1000 more banks than any other country in Europe. Banks in Germany can be divided into three categories –

  • First-tier: First-tier of banks are private banks. There is a total of 200 private banks. Among these 200 private banks, the lending bank is Deutsche Bank.
  • Second-tier: Second tier of banks are publicly owned savings banks. There are 400 publicly-owned savings banks.
  • Third-tier: The last tier comprises of member-owned credit unions. There are more than 1100 member-owned credit unions in Germany.

List of Top 10 Banks in Germany

  1. Deutsche Bank
  2. DZ Bank Group
  3. KfW Bankgruppe
  4. Commerzbank
  5. HypoVereinsbank (UniCredit Bank AG)
  6. Landesbank Baden-Wurttemberg
  7. Bayerische Landesbank (BayernLB)
  8. Norddeutsche Landesbank (Nord/LB)
  9. Landesbank Hessen-Thuringen (Helaba)
  10. NRW.Bank

As per the total assets acquired, we will discuss each one of these banks that stand out in the crowd of around 1800 financial institutions

Banks in_Germany

You are free to use this image on your website, templates etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: Banks in Germany (wallstreetmojo.com)

#1. Deutsche Bank:

As per the total assets acquired, this tops the list in the ranking. At the same time, this is the leading bank of all private banks in Germany. As per the last report of the year, 2016, Deutsche Bank has acquired total assets of Euro 1.591 trillion. Its head-quarter is located in Frankfurt. It was established in the year 1870, almost 147 years ago. It has employed around 99,744 employees. In the year 2016, it has reported a loss of Euro 1.356 billion.

#2. DZ Bank Group:

As per the total assets acquired, this bank is the second largest bank in Germany. The total assets acquired by this bank in the year 2016 were Euro 509.447 billion. In the same year, the profit before taxes of DZ Bank Group was Euro 2.197 billion. There are 29,341 employees working in DZ Bank Group. It was merged with WGZ bank in the year 2016. The head-quarter of DZ Bank Group is situated in Frankfurt.

#3. KfW Bankgruppe:

As per the total assets acquired, this bank is the third-largest bank in Germany. The total assets acquired by this bank in the year 2016 were Euro 507 billion. The operating income (before promotional activity) in the year 2016 was Euro 2210 million. It was founded in the year 1948, almost 69 years ago. It has employed around 5518 employees. Its head-quarter is situated in Frankfurt. Right now it has changed its name to “KfW” only from “KfW Bankgruppe”.

#4. Commerzbank:

As per the total assets acquired, this bank is the fourth largest bank in Germany. The total assets acquired by this bank in the year 2016 were Euro 440.93 billion. It was established on 26th February 1870, around 147 years ago. Its head-quarter is located in Frankfurt. It has employed around 49,941 employees. Total revenue and operating income as per the last report in the year 2016 were Euro 13.71 billion and Euro 1.64 billion

#5. HypoVereinsbank (UniCredit Bank AG):

This is one of the subsidiaries of UniCredit. As per the total assets acquired, this bank is the fifth-largest bank in Germany. The total assets acquired by this bank in the year 2014 were Euro 300.3 billion. It has total equity of Euro 19 billion. It was established in the year 1998. The head-quarter of HypoVereinsbank is located in Munich. The total number of employees that are employed with this bank is 17,980 as per the data of December 2014.

#6. Landesbank Baden-Wurttemberg:

As per the total assets acquired, Landesbank Baden-Wurttemberg has secured the sixth position among 1800 banks in Germany. As per Relbanks.com, it has acquired total assets of Euro 285 billion as per the report of March 2014. It was founded on 1st March 1999. The head-quarter of this bank is situated in Stuttgart. Currently, it has employed around 10,840 employees. The five types of customers of this bank are – private customers, customers of real estate financing, corporate customers, savings bank customers, and customers of capital markets.

#7. Bayerische Landesbank (BayernLB):

As per the total assets acquired, Landesbank Baden-Wurttemberg has secured the seventh position among all banks in Germany. As per Relbanks.com, it has acquired total assets of Euro 257.743 billion as per the report of March 2014. It was founded in the year 1884. BayernLB offers various services to large enterprises, customers of real estate, asset management clients, and various financial institutions. Its head-quarter is situated in Munchen. This bank has employed around 7000 employees.

#8. Norddeutsche Landesbank (Nord/LB):

As per the total assets acquired, Landesbank Baden-Wurttemberg has secured the eighth position among all banks in Germany. As per Relbanks.com, it has acquired total assets of Euro 197.424 billion as per the report of March 2014. It was established in the year 1970. It offers services private, public, corporate, and institutional, all four sectors. The head-quarter of this bank is located in Hanover. It has employed around 6400 employees.

#9. Landesbank Hessen-Thuringen (Helaba):

As per the total assets acquired, Landesbank Hessen-Thuringen has secured the ninth position among 1800 banks in Germany. As per Relbanks.com, it has acquired total assets of Euro 172 billion as per the report of 2015. It was established on 1st June 1953. It has employed around 6150 employees. Helaba’s head-quarters are located in Frankfurt and Erfurt. It serves as a central clearing institution and also provides services to 40% savings banks.

#10. NRW.Bank:

NRW.Bank has secured the tenth position as per the total assets acquired. The total assets acquired by this bank as per the report in March 2014 were Euro 143.643 billion. It was founded in the year 2002. The head-quarters of this bank are situated in Dusseldorf and Munster. NRW.Bank has employed around 1283 employees. It offers multiple services like equity financing, low-interest promotion loans, and advisory services. It is also engaged in treasury services and businesses related to capital marketsCapital MarketsA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read more.

We hope you liked this guide to top banks in Germany. If you are looking forward to making a career in Banking, then you can check out some of the awesome resources –