- Strategic development geared towards global changes and future client needs
- Focus, efficiency and growth as strategic directions
- Expansion plans for all four of the bank's business divisions
Metzler Bank (Metzler) is setting the course for future growth by consistently developing its strategy further. In three strategic areas – focus, efficiency and growth – the bank is laying the foundation for investing in areas that are crucial to its clients in times of global change. Developing the strategy means creating individual expansion plans for each of the bank's business divisions in the next few years.
"From a position of strength, we are continuously evolving in order to provide our clients with the best possible support in the future," says Gerhard Wiesheu, CEO of the Frankfurt-based private bank B. Metzler seel. Sohn & Co. Aktiengesellschaft. "The will and willingness to change is embedded in our DNA and has characterized us for almost 350 years. For Metzler, it’s not the upcoming quarters that count but the upcoming generations. Currently, our clients are confronted with far-reaching changes ranging from geopolitical challenges and global megatrends like decarbonization to technological development spurts like digitization. We want to support our clients as they face these challenges."
Strong starting point – current change processes provide additional opportunities
Metzler holds a strong position in all of its business areas with expertise that is becoming increasingly important for the future, e.g. in the areas of pensions, digital assets and ESG. Metzler also has a unique network covering the breadth of the German economy, companies and investors.
Current far-reaching changes in the economy and society are having a significant impact on companies and investors. Metzler is deriving increased growth potential and extensive business opportunities from this. In Germany, the prospect of growing assets will lead to increasing demand for complex and sustainable asset management services. At the same time, German companies have increasing need for innovative pension models (company pension schemes). Such schemes will become an essential requirement in order to counteract the shortage of skilled workers, attract and retain qualified employees, and remain an attractive employer in the future. Furthermore, the number of succession situations is also increasing due to demographics and a greater general willingness to sell companies.
In addition, the global realignment of supply chains, the implementation of future technologies and the green transformation will lead to a surge in investment and productivity. This goes hand in hand with a significant refinancing requirement for companies in terms of both equity and debt capital.
Focus, efficiency and growth as key levers for strategic development
Metzler will therefore focus on specific products and services in order to create significant added value for its clients. In areas where this is not the case, Metzler will work more closely with partners, e.g. in administrative areas, particularly in asset management. This will free up additional resources, which Metzler will invest in high-growth, future-oriented areas.
By streamlining and digitizing its processes, Metzler will optimize its setup and increase efficiency. This could lead to a significant simplification of the bank's IT architecture. There is also potential to reduce the complexity of business processes in internal areas via digitization and optimization.
Against this backdrop, Metzler anticipates the elimination of approximately ten percent of its headcount throughout the entire bank by 2028. This figure serves as a benchmark that will vary depending on business performance. The headcount reduction is to be carried out in a socially responsible manner. Among other things, Metzler will take advantage of natural fluctuation, extend its existing retirement scheme offer, and encourage employees to take on new suitable roles within the company.
With these measures to focus and increase efficiency, Metzler will create the conditions for securing and expanding sustainable growth hand in hand with its clients. The bank's strategic development includes expansion plans for all four business divisions – as well as Japan and the USA.
Focusing firmly on clients' needs and requirements
As an active asset manager, Metzler Asset Management will concentrate even more consistently on its core competencies of asset and pension management. With a clear focus on ESG and pensions, the aim is to leverage decisive competitive advantages. This goes hand in hand with the focus on multi-asset and equity investment strategies. In addition, Metzler Asset Management will place strategic focus on the DACH region as its core market (Germany, Switzerland and Austria) and also continue to focus on international markets.
Metzler Capital Markets anticipates a significant increase in demand for equity and debt capital from corporate clients in the future, driven by the transformation to a climate-neutral economy and investments in innovation and digitization. Accordingly, Metzler Capital Markets is planning further targeted investments along the value chain of origination/syndication, research, sales and trading for its equities and fixed income services. Institutional clients will benefit from this strengthening when using traditional brokerage and research services. Metzler Capital Markets also sees continued high growth opportunities in currency management and trading (FX), not least due to the expansion of foreign markets and the constantly growing range of services.
There is considerable growth potential for Metzler Corporate Finance, for example when it comes to succession situations, company sales or the placement of company shares. Metzler Corporate Finance is therefore planning to increase the number of employees in the medium term. As part of this process, Metzler will expand its expertise in the Industrials, Technology, Alternative Energy/Infrastructure and Consumer sectors, among others, and strengthen its presence in related areas.
In Metzler Private Banking, Metzler will continue to focus on wealthy private clients, family entrepreneurs and foundations. The Metzler Private Banking team will be expanded in order to grow this business further. The business strategy is two-pronged in this division. Firstly, a new location will be opened in Berlin, and secondly, business will be developed in new regions via the existing branches. All in all, this will open up significant growth opportunities.
Metzler Bank is the heart of the Metzler Group, Germany’s oldest private bank with an unbroken tradition of family ownership for almost 350 years. Metzler Bank focuses on individual capital market services for institutions and discerning private clients.