BNP Paribas to acquire HSBC’s Private Banking unit in Germany

By Gloria Methri

BNP Paribas has signed an agreement with HSBC to acquire the UK bank’s Private Banking activities in Germany. The deal aims to position BNP Paribas Wealth Management among the top players in Germany and increase its assets under management to more than €40 billion.

A key geography for BNP Paribas, Germany offers strong growth potential for wealth management activities, most notably within the Mittelstand (German SMEs) and with the German Entrepreneurs and Families client segment. Leveraging the bank’s diversified and integrated business model, BNP Paribas Wealth Management aims to provide these entrepreneurial clients with a comprehensive service offering, ranging from investment and corporate banking to asset management, all pooled from different franchises.

With a strong focus on HNW and UHNW individuals and complementary regional coverage, most notably in North Rhine-Westphalia, HSBC’s Private Banking activities perfectly fit within BNP Paribas Wealth Management’s model. Part of the Investment and Protection Services division, the Wealth Management unit ranks as the first Private Bank in the eurozone, with global AuM standing at €446 billion at the end of June 2024.

“This acquisition is a new crucial step in positioning BNP Paribas Wealth Management among the leading players in Germany, where we believe our model is best suited to serve the long-term needs of entrepreneurial clients, leveraging on the strong franchises of the Group to both address their personal and corporate needs. It will, therefore, contribute to consolidating our position as the first Wealth Management player in the Eurozone,” said Vincent Lecomte, CEO of BNP Paribas Wealth Management.

“Germany is a key strategic market for the bank with a local presence of more than 75 years. Our 12 business lines make our business model one of the most diversified and resilient ones in the German banking sector. 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 banking group, in Corporate & Institutional Banking, Real Estate, Asset Management and Securities Services,” added Lutz Diederichs, CEO of BNP Paribas Germany.

Once regulatory approvals have been obtained, this transaction is expected to close during the second semester of 2025.