Financial services company BNP Paribas has announced its agreement with HSBC to acquire its Private Banking activities in Germany, aiming to further solidify its position in the industry. Centring its efforts on achieving its objective of strengthening the position of BNP Paribas Wealth Management in Germany, the company intends to acquire HSBC’s Private Banking services, with the transaction being projected to close during the second semester of 2025 after all regulatory approvals are received. The current news follows BNP Paribas’ acquisition of AXA Investment Managers for EUR 5.1 billion in August 2024, as well as an agreement for a long-term collaboration to manage a large part of the latter’s assets.

At that time, executives from the company mentioned that the project would be able to position the group as a prominent European participant in long-term asset management. BNP Paribas Wealth Management The decision to proceed with this move can be attributed to the possible wealth management activities opportunities that Germany could provide to BNP Paribas, especially within the German small and medium-sized enterprises and the German entrepreneurs and families client segments. By utilising BNP Paribas’ diverse and integrated business model, BNP Paribas Wealth Management intends to offer these entrepreneurial clients a comprehensive service suite, which includes investment, corporate banking, and asset management, among others. Mostly focusing on High-net-worth (HNW) and Ultra-high-net-worth (UHNW) individuals and a complementary regional coverage, especially in North Rhine-Westphalia, HSBC’s Private Banking operations align with BNP Paribas’ objective to advance its position as a wealth management participant in Germany. When commenting on the announcement, representatives from BNP Paribas Wealth Management underlined that the acquisition supports their firm’s mission to place itself among the leading companies in the country.

Also, BNP Paribas mentioned that its model intends to suit the needs and requirements of its entrepreneurial clients, utilising the franchises of the group to address their personal and corporate demands. Additionally, the move centres around contributing to the consolidation of BNP Paribas’ position in the Eurozone, with its Wealth Management franchise representing an integral part of its development strategy within the German economy. Source: Link .