BNP Paribas Acquires HSBC's German Custody Services, Expands European Footprint

BNP Paribas, a prominent French banking institution, has announced a significant strategic acquisition. The bank has reached an agreement with HSBC to acquire its custody and depositary banking services in Germany. This move is part of BNP Paribas' broader strategy to expand its securities services division and strengthen its presence in the institutional fund and financial intermediary sectors within Germany.

The acquisition involves the transfer of HSBC's custody business employees in Germany to BNP Paribas' securities services division. This transition is expected to commence in early 2026, with a phased customer migration plan to ensure a smooth handover. The deal is subject to regulatory approval and aims to enhance BNP Paribas' service offerings to institutional clients, aligning with its global-local strategy.

BNP Paribas' position in Germany, one of its core markets, will be bolstered by this acquisition. The bank's comprehensive service portfolio, which spans 12 business areas from global markets to wealth management, will be expanded. This move is expected to reinforce BNP Paribas' leadership in European financial infrastructure, with its custody assets amounting to 14.3 trillion euros.

The acquisition is part of BNP Paribas' ongoing efforts to grow its business in key markets. The bank's securities services division, which manages a significant portion of its assets, will benefit from the addition of HSBC's custody and depositary services in Germany. This will allow BNP Paribas to offer a broader range of products and services to its clients in the region, further solidifying its position as a leading provider of financial services in Europe. The acquisition is expected to be completed by early 2026, with a phased migration of customers to ensure a seamless transition.