BNP Paribas has signed an agreement with HSBC for the acquisition of its private banking activities in Germany, aiming to expand its presence in the market.

The firm hopes that its acquisition will position BNP Paribas Wealth Management among the leading players in Germany, bringing its assets under management (AUM) to more than €40bn.

BNP Paribas believed Germany offered strong growth potential for wealth management activities, most notably within SMEs and with the German entrepreneurs and families client segment.

Leveraging on BNP Paribas’ 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 BNP Paribas’ different franchises.

HSBC’s private banking business had a strong focus on high net worth and ultra high net worth individuals, which BNP Paribas said fit perfectly within its wealth management model.

The closing of the transaction is expected in the second quarter of 2025, once regulatory approvals have been obtained.

Commenting on the announcement, BNP Paribas Wealth Management CEO, Vincent Lecomte, saidL “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 consolidate our position as the first wealth management player in the Eurozone.”

BNP Paribas Germany CEO, Lutz Diederichs, added: “Germany is a key strategic market for BNP Paribas 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 BNP Paribas Group, in particular in corporate & institutional banking, real estate, asset management and securities services.”

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