German Bundesbank reports slower bank consolidation in 2024 as domestic branches fall 8.4%

The German Bundesbank published its 2024 bank office statistics, showing that consolidation in the German banking sector continued at a slower pace, while the domestic branch network contracted much more sharply than in previous years. The number of credit institutions fell by a net 35 to 1,368, and the number of domestic branches fell by 1,631 to 17,870, a decline of 8.4%. Mergers remained the main driver of exits, with 33 mergers (mostly in the cooperative sector) contributing to 45 departures overall, alongside eight licence surrenders, three regroupings within the cooperative sector and one licence withdrawal; there were ten entries, mostly foreign banks seeking a presence in Germany. By sector, cooperative banks declined to 672 institutions, the savings bank sector fell by five to 349 savings banks (with six Landesbanken unchanged), and credit banks fell by four to 238 (with three major banks unchanged). Branch reductions were concentrated among major banks, whose branch network dropped by 1,287 (down 37.1%) to 2,184, largely attributable to Deutsche Bank’s tightening of the former Postbank network; savings banks cut 178 branches to 6,926 (falling below 7,000 for the first time), while cooperative banks cut 186 to 6,402. Internationally, German banks’ majority-owned foreign subsidiaries edged down from 76 to 73, while their foreign branches increased by 14 to 271 (up 5.4%), partly reflecting a regional bank reporting 15 previously opened branches. More than three quarters of foreign branches and almost half of foreign subsidiaries were located in Europe, mainly in European Union countries; in the United Kingdom, German banks had 21 branches and four foreign subsidiaries at end-2024.