The Fürst Fugger Privatbank (Fuggerbank) is comfortable with its position. The Augsburg based institution, which specialises in managing wealth for a high net worth clientele, grows organically and generates high margins. Therefore, CEO Martin Fritz sees no reason to play an active role in the consolidation process among German private banks. „I don’t know of any other German private bank that would be a good fit for us. The private banking sector in Germany is heterogeneous,“ says the 64-year-old in an interview with Börsen-Zeitung.

There is currently a lot of activity in this sector of the largest EU economy. Last year, the ABN Amro-controlled Bethmann Bank acquired the private bank Hauck Aufhäuser Lampe for 672 million euros. And BNP Paribas from France took over the private banking division of HSBC Germany. Last autumn, there were merger talks between Merkur Bank from Munich and Schröderbank from Hamburg, though these failed to reach completion.

Since 1998, Fuggerbank has been 99% owned by the Nürnberger Versicherungsgruppe, with only 1% of the capital remaining in family ownership.

The bank is on a good run. „We want to grow faster than the market“, says the CEO in reference to assets under management (AUM) for 2025. According to his statements, the market grows between 4% and 6% annually on average. Last year, the bank increased its volume by about 10% to more than 7 billion euros. Around half of this is managed in its Private Banking segment. The other half comes through financial intermediaries with whom the institution collaborates. Half of the growth comes from new business, and the other half is driven by the market. The numbers also benefit from rising share prices.

With 162 employees, Fuggerbank has six branches in Mannheim, Munich, Cologne, Nuremberg, and Stuttgart, in addition to its Augsburg headquarters. In 2023, the institution achieved a return on equity before taxes of 35.5%, and 20% after taxes. For 2024, Fritz aims for a return of 38% to 40% before taxes. These are dream returns in the banking sector.

„We are currently the most successful investment of the Nürnberger Versicherungsgruppe. Our success is solely based on our clear focus on the business model“, says Fritz. The bank’s earnings are growing faster than its administrative expenses. This may provide some small comfort to the traditional Franconian insurer, as the parent company of Fuggerbank is currently struggling.

Due to significant burdens in the property and casualty insurance sector, the group is expecting a loss for 2024. Increased costs for spare parts in the auto insurance business are weighing on the Nürnberger group. This is affecting the entire insurance industry. But Fritz notes that Fuggerbank is not a strategic business area for the parent company, saying that „as a private bank, we are no more and no less than a valuable exotic for the insurance group.“

Fuggerbank has now been part of the Nürnberger group for over a quarter of a century. At the time of the ownership change, the bank was in a poor state. The institution underwent a painful transformation. It divested its branch business, and its corporate banking business was transferred to Deutsche Bank. With a much leaner structure, Fuggerbank now operates much more cost-efficiently.

The Nürnberger group does benefit from growing dividend payments from its banking subsidiary. For 2024, Fuggerbank intends to pay out 9 million euros, which would be 80% to 90% of the surplus. This is 1.3 million euros more than for 2023.

The original goal of achieving synergies through a bancassurance model with the acquisition of Fuggerbank has, however, burst like a soap bubble.