BNP Paribas has agreed to acquire the custody and depositary bank business of HSBC in Germany. The deal, which is subject to regulatory approvals, is set to begin implementation in early 2026 through a phased migration of clients.
The transaction will transfer both services and staff from HSBC’s German custody business to BNP Paribas Securities Services, the asset servicing arm of the French banking group. With €14.3 trillion in assets under custody, BNP Paribas is one of the largest global custodians and a key post-trade player in Europe.
Germany is seen as a strategic growth market for BNP Paribas, and the acquisition is aimed at strengthening its position among institutional investors and financial intermediaries in the region, explains a BNP Paribas press release. The deal will also allow the bank to expand its offering for German insurance clients.
Growth through acquisitions
BNP Paribas has been building its presence in Germany across multiple business lines, and the addition of HSBC’s custody operations is in line with its broader strategy to grow selectively through acquisitions. The transfer of services is expected to be seamless for clients, according to the parties involved.
Neither party has disclosed financial terms of the agreement.
