JPMorgan targets more of Germany's Mittelstand economic engine

* Mittelstand sector is key to German economy

* Competition stiff with domestic banks dominating

* JPMorgan wants to grow business tenfold in medium term

* Toilet paper maker WEPA hires JPMorgan for bonds

By Tom Sims

FRANKFURT, May 20 (Reuters) - JPMorgan Chase & Co JPM.N plans to make further inroads in Germany by targeting more of the medium-sized firms that form the backbone of Europe's largest economy, executives at the U.S. bank said.

The move is a challenge to established lenders such as Commerzbank CBKG.DE , UniCredit's HypoVereinsbank CRDI.MI , and Deutsche Bank DBKGn.DE , which have dominated a crowded market for so-called Mittelstand companies for decades.

JPMorgan, whose European Union hub is in Frankfurt, has become one of the largest advisory banks in Germany in recent years, with an average 14% market share in mergers and acquisitions for German firms from 2016 through 2021, Dealogic data shows, double its share over the previous six years.

Leading the effort is Bernhard Brinker, who has built a base of around 75 clients and doubled staff over the past year to around 15 to 20 people.

"There's ample room for us to further grow the business. Now that we've laid the foundation, we're well-positioned to increase the business tenfold in the medium term," Brinker said, referring to the number of clients and revenue.

Since Brinker started its push three years ago, JPMorgan has picked up bankers from Deutsche Bank, ING and Lazard.

"We're continuing to hire...We're always looking for top talent," Brinker said.

The team, which also covers Austria and Switzerland, currently has two job postings, but JPMorgan declined to give further detail on its future headcount growth plans.


Competition will be stiff and the expansion comes at a time of great uncertainty for German business which face the threat of energy shortages resulting from Russia's invasion of Ukraine.

Jan Kupfer, a member of HypoVereinsbank's board, told Reuters in a statement that the Munich-based lender also plans to grow its corporate clients, "especially for the Mittelstand".

"Competition in the corporate customer business remains intense, but we are currently seeing a high demand for advice and financing from Mittelstand companies," he said.

Deutsche Bank said it is the most significant player in the Mittelstand sector, while Commerzbank said its position in the industry remains strong.

Germany's export-oriented economy is dependent upon Mittelstand firms, which by some definitions have fewer than 500 workers and less than 50 million euros a year in revenue. Many are still family-owned.

JPMorgan is focused on larger Mittelstand companies, with annual revenue of 250 million euros to 2 billion euros, and those that have an international focus.

One client that JPMorgan has picked up is Germany's WEPA Group, which makes toilet paper and paper towels.

WEPA previously used Deutsche Bank and HSBC to issue its bonds, but in 2020 it expanded the group to include JPMorgan.

"JPMorgan is the right bank for the internationalization of a German company because JPMorgan itself has a good footprint in Germany," WEPA said in written response to Reuters.

Expansion course Link

Reporting by Tom Sims; Editing by Alexander Smith

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。