Cooperative banks: BB Bank and PSD Bank Hessen-Thüringen merge

BB Bank and PSD Bank Hessen-Thüringen have successfully concluded their exploratory talks and are preparing a merger between the two institutions. The goal is to combine their combined strengths in the private banking business, expand their digital and personal offerings, and invest in additional growth regions.

BB Bank is already the largest cooperative retail bank in Germany, with total assets of approximately €22 billion. PSD Bank Hessen-Thüringen contributes total assets of approximately €1.6 billion. The merger would create an institution with total assets of approximately €24 billion and a managed customer business volume of over €43 billion.

"We combine the innovative strength and stability of the nationwide BB Bank with the know-how of PSD Bank Hessen-Thüringen, which is also clearly focused on private customer business."

According to the statement, both banks share a common understanding of the opportunities and challenges facing the industry. The planned merger focuses on members and customers. The merger is intended to strengthen market presence in Germany, particularly in the economically strong Frankfurt/Rhine-Main region.

Oliver Lüsch, CEO of BB Bank, emphasizes the strategic importance of the merger: "We are combining the innovative strength and stability of the nationwide BB Bank with the expertise of PSD Bank Hessen-Thüringen, which is also clearly focused on private customer business."

The merger is scheduled to be completed after approval by the respective boards in 2026, retroactively to January 1, 2026. BB Bank will be the legal and technical successor. According to both banks, all jobs will be retained. The locations in Darmstadt, Erfurt, and Eschborn will remain, either as branches or as competence centers.

Martin Schöndorf, member of the board of PSD Bank Hessen-Thüringen, sees the merger as a logical further development of the cooperative idea: "We believe that community is the best response to change. With this merger, we are securing a long-term perspective for our customers and employees."

BB Bank currently serves approximately 500,000 members and employs approximately 85 people in private banking, with a client volume of approximately €9.5 billion, including over €5 billion in assets under management. This segment grew by approximately ten percent in the 2024 fiscal year.

PSD Bank Hessen-Thüringen is a regionally anchored cooperative bank with approximately 55,000 private customers and three advisory centers in Eschborn, Darmstadt and Erfurt.