A bank recently arrived in London says that it is making “tonnes of money” from broking ordinary equities — an activity that has defeated some of the biggest banks in the world, including the state-owned Royal Bank of Scotland.
Berenberg Bank, which has been hiring leading analysts from Goldman Sachs, JP Morgan and Morgan Stanley, reported a 10 per cent increase in annual net profit to €66.1 million for last year.
Andrew McNally, the UK chairman, said: “Everyone tells us you can’t make money in straight cash equities, yet somehow — guess what? — the clients pay us tonnes of money.”
The German bank opened its doors in London in 2003 and employs nearly 200 people in Britain. Mr McNally wants to expand in asset management and investment banking, creating a staff of 500 within five years.