Commerzbank is strengthening its wealth management services for ultra-high-net-worth individuals and family offices through a major expansion of its specialist operations across Germany.

The Frankfurt-based lender announced on Tuesday it would consolidate its expertise into a dedicated division for ultra-wealthy clients and family offices, while adding two new locations in Hamburg and Stuttgart to its existing presence in Berlin, Düsseldorf, Frankfurt, and Munich.

The expansion comes as Commerzbank seeks to boost its fee income and enhance its position in Germany's competitive wealth management sector. The move also follows an unsolicited approach from rival UniCredit, which recently disclosed a significant stake in the German bank.

Thomas Schaufler, member of the board of managing directors for private and small-business customers at Commerzbank, explained the strategic importance of the expansion: "We are strengthening the individual support for our ultra-high-net-worth customers. Due to the economic transformation, there is a growing demand for holistic advisory especially with complex wealth structures."

The new division will be led by Sebastian Ahlhorn, who joined Commerzbank as managing director at the start of the year. Ahlhorn brings considerable expertise from previous leadership roles in family office boutiques and private equity, most recently serving as chief financial officer at multi-family office FINVIA.

Christian Hassel, divisional board member for wealth management and private banking, highlighted the bank's unique position in the market: "With our deep roots in the German Mittelstand, we are in high demand for private wealth management services. There is a significant need for advisory services regarding topics such as wealth transfer to the next generation."

The expansion reflects a broader trend in German private banking, with several international institutions enhancing their presence in this lucrative market. JPMorgan Chase & Co. recently announced plans to establish a team of more than 10 private bankers in Munich, while BNP Paribas acquired HSBC's German wealth unit in September.

The new division will focus primarily on ultra-high-net-worth families, private individuals, and small and medium-sized enterprises, offering access to the bank's global product and service spectrum, including asset management, capital market expertise, and specialised subsidiary services.

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