BNP Paribas has agreed to acquire HSBC’s private banking operations in Germany from HSBC Continental Europe in a move to strengthen its position in the country’s wealth management sector.
The financial terms of the deal were not disclosed.
Through the deal, BNP Paribas aims to bring its wealth management unit’s assets under management (AuM) to over €40bn.
Under the terms of the agreement, around 120 staff members and the assets and customers of HSBC Germany’s private banking business will be migrated to BNP Paribas.
HSBC’s German private banking unit, which is said to have a strong presence in North Rhine-Westphalia, focuses on high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals.
HSBC Germany CEO Michael Schleef said: “We are very pleased that we have found a strategic buyer for our private banking activities in Germany who is well positioned to take the business forward.
“The transaction will simplify our business model in Germany and will enable us to further focus on our international wholesale banking business.”
According to BNP Paribas, Germany represents a key market as it offers significant growth opportunities, particularly among German small and medium-sized enterprises, entrepreneurs, and families client segment.
BNP Paribas plans to leverage its diversified business model to provide these clients with a wide range of services, including investment banking, corporate banking, and asset management.
BNP Paribas Germany CEO Lutz Diederichs said: “The further development of our Wealth Management franchise is an integral part of our growth plan within the German economy.
“Wealth Management in Germany serves as an entry portal for our clients into the entire portfolio of services of the BNP Paribas Group, in particular in Corporate & Institutional Banking, Real Estate, Asset Management and Securities Services.”
Subject to regulatory approvals, the transaction is anticipated to be completed during the second semester of 2025.
In recent years, HSBC also divested other businesses in Western markets including the US, France, and Canada to focus on Asia where it has the most scale.
In April this year, HSBC Latin America, agreed to divest its Argentine banking operations to Grupo Financiero Galicia for $550m.
The following month, HSBC completed the sale of its Russian business unit to Moscow-based privately held commercial bank Expobank.
