French banking group BNP Paribas has announced an agreement to acquire HSBC’s custody and depositary bank business in Germany.
The financial terms of the deal were not disclosed by the parties.
This move is set to bolster BNP Paribas’ Securities Services division, which currently manages €14.3 trillion in assets globally, by enhancing its presence as a top custodian and depositary bank in Germany.
The German custody business involved in the deal concentrates on providing domestic custody, clearing, and depository services for institutional clients.
According to BNP Paribas, the transaction aligns with its strategy to strengthen its services in the institutional funds and financial intermediaries sectors and to expand offerings for insurance companies within the region.
BNP Paribas securities services head and financial institutions coverage chairman Patrick Colle said: “As we continue to strengthen our global-local, integrated bank model at the service of our institutional client franchise, this transaction underpins our strategic goal to expand our presence and capabilities in targeted markets, both in Europe and globally.
“The combination of our on-the-ground expertise in all major markets and our broadening offering enables us to build upon our leadership while reinforcing our role as a long-term trusted partner to our clients.”
The agreement is expected to facilitate a seamless transfer of services from HSBC Continental Europe to BNP Paribas’ operations in Germany.
Employees from HSBC’s custody business in Germany will transition to BNP Paribas as part of this acquisition. The shift is expected to begin in early 2026 through a phased migration process for clients and staff.
The transaction also reflects HSBC’s simplification strategy announced in October 2024, which focuses on strengthening its competitive areas and enhancing connections through its international network.
The deal is pending customary regulatory and anti-trust approvals as well as discussions with the Works Council in Germany.
HSBC said that it continues to evaluate strategic options for its fund administration business in Germany.
