CaixaBank first arrived in Germany in 2004, specifically in the city of Stuttgart in the south-west of the country thanks to a partnership with Landesbank Baden-Württemberg (LBBW). Following its initial experience in this vibrant area of the automotive and machinery industry, in 2012, CaixaBank opened a second office in Frankfurt, the financial capital of the country. In 2015, when I arrived at this office to manage the bank's activity in Germany, we led the way towards turning the representative office into an International Banking branch located in Frankfurt, a process that culminated in the opening of the German branch on 4 December 2017.
Reinhard Messerschmidt, Frankfurt Branch Manager at CaixaBank
Germany has changed a lot over the last 30 years since the reunification of the country in 1990. The country is also changing constantly at a sociocultural level, since Germany has one of the highest levels of immigration in the world after the USA. The democratic strength of the government and public institutions, the high level of legal security, and its comprehensive focus on international markets make Germany the primary target for business operations in Europe for most countries. As one of the leading nations of the European Union, Germany offers unique opportunities for international groups to establish European offices.
Germany is the leading economic power in Europe and fourth in the world. In addition, Germany is Spain’s main commercial partner. From an economic perspective (based on 2018 GDP), Germany is the leading European power and the fourth in the world (after the USA, China, and Japan) (1). Only 0.7% of the German GDP is linked to the primary sector (agriculture), 31.1% is produced in the secondary sector (industry and construction), and 68.2% in the tertiary sector (services) (2). Furthermore, Germany is the third-largest exporter and importer in the world (2018) (3).
"Germany is the leading economic power in Europe and fourth in the world. In addition, Germany is Spain’s main commercial partner."
For Spain, Germany is the most important market for imports (14%) and the second most important for exports (11%) (4). Spain is one of Germany’s strategic economic partners with a trade flow volume of approximately €77 billion (2018) (5). In this context, large Spanish companies have the chance to form part of Germany’s economic development and participate in significant projects in the infrastructure, renewable energy, agri-food, and public works sectors. In turn, these corporations help to channel the business flow towards product and service providers. There is also an increasing level of trade cooperation between Germany and Spain, as shown by business partnerships such as ACS/Hochtief, Siemens/Gamesa, and Henkell/Freixenet.
Despite the general hesitancy to predict the future situation of the European Union, within a few years after the completion of Brexit, many people expect that an even greater focus will be placed on Germany, especially in the financial banking sector in Frankfurt. We outlook big changes with excellent opportunities in Europe, with Germany and a resurgent Spain at the centre of many people's expectations.
Therefore, Spanish companies must keep a close eye on Germany and Central Europe to take advantage of potential investment opportunities with the help of good financial advice and the expertise of local specialists. In addition, German companies are showing an increasing interest in Spain due to the steady improvement in the Spanish economy following the recent double crisis.
"We outlook big changes with excellent opportunities in Europe, with Germany and a resurgent Spain at the centre of many people's expectations."
CaixaBank, with its new branch in Frankfurt, is perfectly positioned to respond proactively to the not great expectations for the coming years through the partnership between Spain and Germany.
Since opening in January 2018, the branch has seen a considerable increase in the number of corporate clients and business volume. 2019 has been a crucial year for the CaixaBank branch in Germany, with a notable increase in its balance sheet and revenue. Furthermore, the local team has been combined with select appointments to ensure the best possible customer service.
"2019 has been a crucial year for the CaixaBank branch in Germany, with a notable increase in its balance sheet and revenue."
Germany is ranked fifth in the world and fourth in Europe according to the CaixaBank Index for Business Internationalisation (ICIE). To see the country factsheet, please click the following link
(4)-https://www.s-ge.com/sites/default/files/publication/free/wirtschaftsbericht-spanien-eda-2018-06.pdf
(5)-https://www.auwi-bayern.de/Europa/Spanien/export-import-statistik.html
