HSBC Sells German Private Banking Business To BNP Paribas

HSBC Sells German Private Banking Business To BNP Paribas

HSBC Holdings plc (NYSE:HSBC) shares are trading higher after the company inked a deal with BNP Paribas (OTC:BNPQY) to sell its private banking activities in Germany. The financial details were not disclosed.

HSBC’s Private Banking activities in Germany present a significant opportunity for BNP Paribas, which aims to tap into the strong growth potential in wealth management, particularly with Mittelstand (German SMEs) and German Entrepreneurs and Families.

BNP Paribas Wealth Management plans to leverage its integrated business model to provide comprehensive services, including investment and corporate banking and asset management.

This deal aims to position BNP Paribas Wealth Management among the top players in Germany, boosting its assets under management to over €40 billion.

The transaction is expected to close in the second half of 2025, pending the necessary regulatory approvals.

Also Read: Visa And HSBC Partner To Propel Zing App’s Global Expansion And Enhanced Currency Services

Vincent Lecomte, CEO of BNP Paribas Wealth Management, said, “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.”

Last month, HSBC stated that it aims to double its British wealth assets to £100 billion (around $131 billion) within five years, focusing on the ‘mass affluent‘ market for higher fee income.

In July, HSBC disclosed that it plans to slow hiring and limit expenses under the outgoing CEO.

Investors can gain exposure to the stock via Avantis International Large Cap Value ETF (NYSE:AVIV) and Dimensional International Value ETF (NYSE:DFIV).

Price Action: HSBC shares are up 1.13% at $44.67 premarket at the last check Monday.

Image: Shutterstock/ sylv1rob1

Read Next:

HSBC Faces Renewed Regulatory Scrutiny Over Data Practices And Risk Management: Report

Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.

Get the latest stock analysis from Benzinga?

This article HSBC Sells German Private Banking Business To BNP Paribas originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.