BNP Paribas has completed its previously announced acquisition of HSBC’s private banking operations in Germany.
The bank said that the acquisition, which was announced in September, will strengthen the position of its BNP Paribas Wealth Management division in the European wealth management sector.
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The transaction would also increase the wealth management unit’s assets under management (AUM) to nearly €50bn, said BNP Paribas.
BNP Paribas wealth management CEO Vincent Lecomte said: “This acquisition is a new crucial step for BNP Paribas Wealth Management as it enables us to more than double our size in Germany and to join the premier league of local German players.
“Leveraging on BNP Paribas’ diversified and integrated business model, we aim to provide Mittelstand SMEs and entrepreneurs and families with a comprehensive service offering, ranging from investment and corporate banking to asset management, all pooled from BNP Paribas’ well-established different franchises.
“We are delighted to welcome the HSBC Private Banking teams, who help us build an even stronger franchise in Germany to better serve those clients.”
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By GlobalDataBNP Paribas considers Germany a significant market with strong potential for wealth management activities, particularly for Mittelstand and entrepreneur clients.
Mittelstand refers to small and medium-sized enterprises (SMEs) in Germany.
BNP Paribas said the acquisition aims to enhance its offerings to high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals.
Furthermore, it benefits from HSBC private banking’s regional presence, especially in North Rhine-Westphalia.
BNP Paribas Wealth Management intends to leverage its integrated business model to provide comprehensive services ranging from investment to corporate banking.
BNP Paribas Germany wealth management CEO and International Markets wealth management deputy CEO Beat Bachmann said: “By combining these two entities, I have every confidence we can strengthen our franchise in Germany and put our full expertise at the service of our clients and their projects.
“With a local presence dating back more than 75 years in Germany and 12 business lines driven by the expertise of more than 6,000 employees, BNP Paribas is well positioned to continue supporting German entrepreneurs and families.”
Earlier this year, BNP Paribas Cardif finalised the acquisition of AXA Investment Managers in a deal valued at approximately €5.1bn.
This acquisition includes a long-term partnership with the AXA Group, allowing BNP Paribas Cardif to manage a significant portion of AXA’s assets.
