BNP Paribas (EPA: BNP) announces that it has signed an agreement with HSBC (NYSE: HSBC) for the acquisition of their Private Banking activities in Germany, with the ambition to position BNP Paribas Wealth Management among the top leading players in Germany and bringing its AuM1 to more than €40bn.
A key geography for BNP Paribas, Germany offers “strong growth potential for wealth management activities, most notably within the Mittelstand (German 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’ well-established different franchises.”
With a strong focus on HNW and UHNW² 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.”
Part of the Investment and Protection Services division, BNP Paribas Wealth Management ranks as the first Private Bank “in the eurozone with global AuM standing at €446bn at the end of June 2024.”
Vincent Lecomte, CEO of BNP Paribas Wealth Management:
“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.”
Lutz Diederichs, CEO of BNP Paribas Germany said:
“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 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.”
The closing of this transaction is expected during “the second semester of 2025, once regulatory approvals have been obtained.”
