Rothschild is understood to have won three mandates to advise Germany's regional banking sector, which is facing restructuring due to tighter capital adequacy requirements and pressure from the commercial sector.

According to a source close to the bank, Rothschild has been working with the owners of WestLB, Landesbank Rheinland-Pfalz and Landesbank Hessen-Thuringen (Heleba) as they review their strategic options. Rothschild declined to comment.