BNP Paribas has announced the signing of an agreement with HSBC for the acquisition of its private banking activities in Germany, an operation that aims to position BNP Paribas Wealth Management among the main players in Germany and increase the amount of assets under management to more than 40 billion euros.
Germany, a key geography for BNP Paribas, offers strong growth potential for wealth management activities, especially within the mittelstand (German SMEs) segment and for German business and family clients. Leveraging 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 grouped together from of the different well-established BNP Paribas franchises.
HSBC’s private banking activities, which focus mainly on HNW and UHNW, and which have complementary regional coverage, especially in North Rhine-Westphalia, fit perfectly into the BNP Paribas Wealth Management model and will enable BNP Paribas position itself among the main asset managers in the country, according to the French firm’s statement.
BNP Paribas Wealth Management, part of the Investment and Protection Services division, is the first private bank in the euro area, with global assets of €446 billion at the end of June 2024.
The closing of this operation is scheduled for the second half of 2025, once regulatory authorizations have been obtained.
«This acquisition is a crucial new 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 business clients, leveraging the Group’s strong franchises. to serve both your personal and corporate needs. Therefore, it will contribute to consolidating our position as the leading wealth management player in the euro zone,” he assured. Vincent Lecomte, CEO de BNP Paribas Wealth Management.
For its part, Lutz Diederichs, CEO of BNP Paribas Germanycommented that «Germany is a key strategic market for BNP Paribas, with a local presence of more than 75 years. Our twelve business lines make our business model one of the most diversified and resilient in the German banking sector. The development of our wealth management franchise is an integral part of our growth plan in the German economy. Wealth Management in Germany serves as the entry portal for our clients to the entire portfolio of services of the BNP Paribas Group, in particular in Corporate & Institutional Banking, Real Estate, Asset Management and Securities Services.
