The French bank said yesterday that it has agreed to buy HSBC's private banking operations in Germany, continuing a programme of expansion that has been in the works for some years.

BNP Paribas has agreed to buy HSBC’s private arm in Germany, continuing a build-out of the French bank’s activities in the country, as previously reported.

BNP Paribas said the purchase price is not being disclosed when it was asked by WealthBriefing about the matter. 

Paris-listed BNP Paribas said the acquisition will help it to become among the “top leading players in Germany," bringing its AuM to more than €40 billion ($44.5 billion). 

“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,” Vincent Lecomte (pictured), CEO of BNP Paribas Wealth Management, said in a statement. 

The French bank is targeting the business leaders – and families – of Germany’s Mittelstand sector of small and medium-sized enterprises, covering their private and business needs under one roof.

“With a strong focus on HNW and UHNW individuals and a complementary regional coverage, most notably in North Rhine-Westphalia, HSBC’s Private Banking activities perfectly fit within BNP Paribas Wealth Management’s model and will enable BNP Paribas to rank among the leading wealth management players in the country,” BNP Paribas said.

BNP Paribas refers to itself as the “first private banking in the eurozone” with global AuM standing at €446 billion as at the end of June 2024.

This transaction is expected to close during the second half of 2025, once regulatory approvals have been obtained.

HSBC, responding to a request from this publication for comment, said the potential transaction is subject to relevant governmental approvals and the conclusion of negotiations with the Works Council in Germany. Some 120 staff members and the assets and customers of HSBC Germany’s private banking business would be transferred to BNP Paribas as part of the sale.  

“We are very pleased that we have found a strategic buyer for our private banking activities in Germany who is well positioned to take the business forward. The transaction will simplify our business model in Germany and will enable us to further focus on our international wholesale banking business,” Michael Schleef, CEO of HSBC Germany, said.

About six years ago this news service spoke to BNP Paribas about its views on the German market's potential.