DZ Privatbank, the Luxembourg-headquartered private banking business of the German banking group DZ Bank, has opened its first offices in Germany as part of its development of private banking activities in the country.

New offices in Hanover, Munich and Stuttgart represent another milestone in the firm’s development of the banking group, the firm said in a statement.

The private banking services are currently offered by Volksbank Raiffeisenbank, which will operate under the VR-PrivateBanking brand in the future.

DZ Bank is the central bank for over 1,000 affiliated Volksbank Raiffeisenbank branches; new branches will act as a focal point for the local banks. Customer support and advice remain a priority for Volksbank Raiffeisenbank and DZ Privatbank employees will support as and when needed, the firm said.

The new private banking initiative is designed to strengthen Volksbank Raiffeisenbank's position regionally and to build up its expertise in private wealth management.

"We want to take our chance in the current environment. Our goal is to create a significant and sustained increase of market share for the Volksbank Raiffeisenbank business," said Dr Stefan Schwab, a chief executive at DZ Privatbank Group who coordinates the private banking activities of DZ Bank in Germany, Luxembourg, Zurich and Singapore.

The firm has also announced the nationwide expansion of its retail network in Germany.