# JPMorgan targets more of Germany’s Mittelstand economic engine Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-05-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: JPMorgan Chase & Co Targets German Mittelstand Meta Description: JPMorgan Chase & Co is expanding its presence in Germany by focusing on medium-sized firms, challenging established lenders like Commerzbank and Deutsche Bank. URL: https://financedigest.com/jpmorgan-targets-more-of-germanys-mittelstand-economic-enginehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-05-20t061100z2lynxnpei4j05trtroptp4usa-banks-results-1736815703761-compressed.jpg) By Tom Sims FRANKFURT (Reuters) – JPMorgan Chase & Co 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, UniCredit’s HypoVereinsbank, and [Deutsche Bank](https://www.financedigest.com/citigroup-to-buy-deutsche-bank-license-in-mexico-for-wholesale-unit.html "Citigroup to buy Deutsche Bank license in Mexico for wholesale unit"), which have dominated a crowded market for so-called Mittelstand companies for decades. JPMorgan, whose [European Union hub](https://www.financedigest.com/jaguar-land-rover-opens-three-european-self-driving-tech-hubs.html "Jaguar Land Rover opens three European self-driving tech hubs") 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](https://www.financedigest.com/the-double-chamber-prefilled-syringes-market-to-throw-its-innovation-based-weight-around.html "The Double Chamber Prefilled Syringes Market to throw its innovation-based weight around") staff over the past year to around 15 to 20 people. There’s ample room for us to further [grow the business](https://www.financedigest.com/using-100bridging-finance-grow-business.html "Using 100% Bridging Finance to Grow your Business"). Now that we’ve laid the foundation, we’re well-positioned to [increase the business](https://www.financedigest.com/frances-ynsect-to-refocus-bug-business-after-capital-increase.html "France’s Ynsect to refocus bug business after capital increase") 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](https://www.financedigest.com/risk-of-uk-balance-of-payments-crisis-under-truss-is-rising-deutsche-bank-warns.html "Risk of UK balance of payments crisis under Truss is rising, Deutsche Bank warns"), ING and Lazard. We’re [continuing to hire..](https://www.financedigest.com/multilocal-hires-new-directors-as-steep-growth-trajectory-continues.html "Multilocal hires new directors as steep growth trajectory continues").We’re always looking for [top talent,”](https://www.financedigest.com/5-steps-hiring-top-talent-youre-just-start.html "5 steps to hiring top talent when you’re just a start-up ") 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](https://www.financedigest.com/portugals-q3-growth-accelerates-with-consumption-but-future-not-shining.html "Portugal’s Q3 growth accelerates with consumption but future not shining") plans. INTENSE COMPETITION Competition will be stiff and the expansion comes at a time of great uncertainty for German [business which face the threat of energy](https://www.financedigest.com/schneider-and-greenyellow-target-smaller-businesses-with-energy-saving-technology.html "Schneider and GreenYellow target smaller businesses with energy saving technology") 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](https://www.financedigest.com/bank-of-england-sets-out-plans-to-sell-23-billion-corporate-bond-stockpile.html "Bank of England sets out plans to sell billion corporate bond stockpile") clients, “especially for the Mittelstand. Competition in the corporate customer [business remains](https://www.financedigest.com/iran-open-for-business-but-caution-remains-the-watchword.html "Iran: ‘open for business’ – but caution remains the watchword") intense, but we are currently seeing a high demand for advice and financing from Mittelstand companies,” he said. [Deutsche Bank](https://www.financedigest.com/deutsche-bank-names-eigendorf-new-chief-sustainability-officer.html "Deutsche Bank names Eigendorf new chief sustainability officer") 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](https://www.financedigest.com/germanys-merck-to-invest-300-million-euros-in-us-gas-plant.html "Germany’s Merck to invest 300 million euros in US gas plant") a year in revenue. Many are still family-owned. JPMorgan is focused on larger Mittelstand companies, with annual revenue of 250 [million euros](https://www.financedigest.com/amazon-grants-1-5-million-euros-to-dutch-seaweed-farm-project.html "Amazon grants 1.5 million euros to Dutch seaweed farm project") to 2 billion euros, and those that have an international focus. One [client that JPMorgan has picked up is Germany’s](https://www.financedigest.com/bny-mellon-strengthens-support-for-treasury-services-clients-in-germany-with-appointment-of-gungor-taner.html "BNY MELLON STRENGTHENS SUPPORT FOR TREASURY SERVICES CLIENTS IN GERMANY WITH APPOINTMENT OF GÜNGÖR TANER") WEPA Group, which makes toilet paper and paper towels. WEPA previously used Deutsche [Bank and HSBC](https://www.financedigest.com/hsbc-acquires-british-arm-of-stricken-silicon-valley-bank.html "HSBC acquires British arm of stricken Silicon Valley Bank") 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](https://www.financedigest.com/bank-of-england-to-raise-rates-by-50bps-again-to-tame-inflation-reuters-poll.html "Bank of England to raise rates by 50bps again to tame inflation: Reuters Poll"). [(Reporting by Tom Sims; Editing by Alexander Smith)](https://www.financedigest.com/simalliance-members-report-shipments-of-4-9-billion-sims-in-2017-while-estimated-total-available-sim-market-in-2017-increases-2-75-to-5-6-billion-units.html "SIMalliance Members Report Shipments of 4.9 Billion SIMs in 2017, while Estimated Total Available SIM Market in 2017 Increases 2.75% to 5.6 Billion Units   ") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---