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BNP Paribas Buys Dexia's French Private Banking Operation

Franco-Belgian bank Dexia has agreed to sell its Paris-based private banking arm to BNP Paribas in a deal worth close to €200 million ($263 ...
Franco-Belgian bank Dexia has agreed to sell its Paris-based private banking arm to BNP Paribas in a deal worth close to €200 million ($263 million). The acquisition of Dexia’s French arm, which has €2.8 billion of assets, will put BNP Paribas into the global top ten private banks, with assets under management of almost €140 billion. According to François Debiesse, head of BNP Paribas private bank the Dexia deal could be the first of several for BNP Paribas, which he confirmed was in takeover talks for “a much bigger operation” outside France. Dexia’s French private banking arm employs 196 staff and made revenues of €18.9 million and net profits of €3.6 million in the first half of 2006. It was formed by the combination in 2002 of Dexia’s Banque Industrielle et Mobilière Privée, with Banque Vernes. “The factor of critical size has become more important in this market, as you have to invest massively in your teams and your technology platforms. An increasing number of operators will have to make a choice, whether they have the ability and desire to continue to make the necessary investments in this business,” said Mr Debiesse. He predicted further consolidation in the French private banking market. BNP Paribas forecasts that France’s private banking market will grow by an annual 7 per cent to reach €625 billion of assets under management by 2009.