French bank BNP Paribas (BNPQY.US) has agreed to acquire the German private banking division of HSBC Bank (HSBC.US).

French bank BNP Paribas (BNPQY.US) announced on Monday that it has signed an agreement to acquire HSBC's private banking division in Germany, in order to further expand its business in the wealth management sector. BNP Paribas stated that the transaction is expected to be completed in the second quarter of 2025, at which point the bank's managed assets will exceed 40 billion euros ($44.64 billion). BNP Paribas did not disclose the selling amount. Vincent Lecomte, a senior executive at BNP Paribas, said in a statement, "This acquisition will strengthen our position as a leader in the private banking business in the eurozone." It is understood that a large number of family enterprises are driving the demand for wealth services in Germany, with domestic banks such as Deutsche Bank Aktiengesellschaft (DB.US) and Commerzbank (CRZBY.US) also seeking growth in their private banking business. Just a few months ago, ABN Amro Bank acquired German bank Hauck & Aufhuser Lampe Privatbank AG for 672 million euros ($730 million), expanding the Dutch company's operations in the wealth management sector. Reports in April of this year indicated that HSBC has been exploring the sale of various businesses in Germany. July reports mentioned that BNP Paribas was interested in the wealth management division. Furthermore, HSBC is focusing on the Asian market and has in recent years reduced its operations in Western markets including the United States, France, and Canada, shrinking a once-global empire and positioning itself as the "world's local bank."