(Reuters) – BNP Paribas said on Monday it had signed an agreement with HSBC to acquire its private banking business in Germany.
“This acquisition allows BNP Paribas Wealth Management to position itself among the leading players in the sector in Germany and to increase its assets under management in Germany to more than 40 billion euros,” the group said in a press release.
Germany, according to the group, offers significant growth potential for private banking activities, particularly among local small and medium-sized enterprises (SMEs) and family businesses.
As part of this sale, approximately 120 employees and the assets and clients of HSBC Germany’s private banking business would be transferred to BNP Paribas, HSBC Continental Europe said in a separate press release.
This transaction should “generate a gain on the sale”, adds the German subsidiary.
“The transaction will simplify our business model in Germany and allow us to focus more on our international financing and markets activities,” said Michael Schleef, CEO of HSBC Germany.
BNP Paribas Wealth Management had 446 billion euros in assets under management at the end of June 2024.
The completion of this transaction is scheduled for the second quarter of 2025, indicates BNP Paribas.
(Written by Mara Vilcu and Kate Entringer, edited by Augustin Turpin and Blandine Hénault)
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