The new subsidiary bank, named St Galler Kantonalbank Deutschland, is to focus initially on the southern region of Germany. 

The bank, which is currently in a testing phase and will officially launch on 24 April, will mainly cater for private banking clients, including individuals, foundations and family offices.

The launch of its German subsidiary is part of SGKB’s wider expansion plans for its private banking business. In 2008 the bank acquired Anglo Irish Bank (Suisse) in Geneva, having completed the acquisition of Bank Thorbecke, St Gallen, and Hyposwiss, Zurich, in 2003 and 2002 respectively.

SGKB was founded in 1868 to serve the local population of the Canton of St Gallen; the Canton remains the bank’s majority shareholder since its listing in 2001, retaining 54.8 per cent of share capital.

The SGKB group employs over 1,200 people and has SFr37.7 billion (around $33 billion) in funds under management, as at 31 December 2008.