HSBC Continental Europe has agreed to sell its private banking division in Germany to BNP Paribas. The deal will transfer around 120 employees, along with the resources and clientele of HSBC Germany’s private banking division, to BNP Paribas.
The transaction is subject to government clearance and the conclusion of discussions with the German Works Council. The deal is expected to be completed in the second half of 2025, with HSBC predicting a gain on the sale.
iCapital will power HSBC Global Private Banking
As part of HSBC’s broader strategy, iCapital, a global fintech platform for alternative investments, will provide its technology to HSBC Global Private Banking. The technology will first be deployed in Hong Kong and Singapore before expanding to other markets.
Additionally, BNP Paribas has made significant strides in the private debt sector. Its European SME Debt Fund III reached a final close earlier this month with €741 million ($821 million), surpassing its initial €600 million target. Since its inception in 2016, BNP Paribas’ private debt activity has supported the growth of more than 250 companies across Europe.
The sale of HSBC’s German private banking unit marks a strategic shift in both banks’ operations in the region.
HSBC to focus on international wholesale banking business
Michael Schleef, CEO of HSBC Germany, said: “We are very pleased that we have found a strategic buyer for our private banking activities in Germany who is well positioned to take the business forward. The transaction will simplify our business model in Germany and will enable us to further focus on our international wholesale banking business.”
Jan-Marc Fergg, global head of ESG and managed solutions, HSBC Global Private Banking and Wealth shared: “Our thorough understanding of alternative investments and private markets enables us to advise and support our clients in diversifying and enhancing their portfolios to reach their financial objectives. Through this collaboration with iCapital, we are poised to make a broader range of alternative investment opportunities more accessible to our clients.”
