HSBC Holdings plc is on the move, having inked a deal with BNP Paribas to sell its private banking activities in Germany. While financial details of the transaction remain undisclosed, the move represents a significant opportunity for BNP Paribas to tap into the robust growth potential of Germany’s wealth management sector, particularly among Mittelstand (German SMEs) and German entrepreneurs and families.
BNP Paribas Wealth Management intends to leverage its integrated business model to provide comprehensive services, encompassing investment, corporate banking, and asset management. This strategic acquisition aims to propel BNP Paribas Wealth Management into the ranks of top players in Germany, boosting its assets under management to over €40 billion. The transaction is anticipated to reach completion in the second half of 2025, subject to regulatory approvals.
Vincent Lecomte, CEO of BNP Paribas Wealth Management, expressed his enthusiasm for the acquisition, stating, “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.”
This move comes as HSBC outlined its ambition to double its British wealth assets to £100 billion (around $131 billion) within five years, targeting the ‘mass affluent’ market for increased fee income. In July, HSBC announced plans to slow hiring and limit expenses under the outgoing CEO.
Investors seeking exposure to HSBC can consider the Avantis International Large Cap Value ETF (AVIV) and Dimensional International Value ETF (DFIV). As of Monday’s premarket trading, HSBC shares were up 1.13% at $44.67.
