HSBC Continental Europe has announced an agreement to sell its custody business in Germany to BNP Paribas S.A., Niederlassung Deutschland. This move aligns with HSBC’s ongoing strategy to simplify its operations and concentrate on markets where it holds a competitive edge.

The custody business in Germany provides domestic custody, clearing, and depository services to German institutional clients. Under the terms of the potential transaction, all custody staff currently employed by HSBC Continental Europe S.A. in Germany, along with associated assets and client relationships, will transfer to BNP Paribas.

HSBC to Sell German Custody Business to BNP Paribas

This decision stems from HSBC’s simplification strategy unveiled in October 2024. The bank is realigning its focus toward areas with the highest growth potential, particularly where it can offer unique value through its international network. For its Securities Services division, HSBC plans to strengthen its presence in Asia and the Middle East, while continuing to deliver high-quality custody and fund services to clients in the UK and Europe through its hubs in London, Ireland, and Luxembourg.

The transaction remains subject to customary regulatory and antitrust approvals, as well as the conclusion of negotiations with the Works Council in Germany. If these conditions are met, a phased transition of staff and clients is expected to begin in early 2026.

BNP Paribas, a major European financial institution with a strong presence in custody and asset servicing, is ready to integrate the incoming business and staff into its German operations.

HSBC has also indicated that a separate strategic review of its fund administration business in Germany is ongoing, signaling further potential shifts in its regional service offerings.

This latest move underscores HSBC’s broader commitment to streamline its global footprint and intensify its focus on priority markets, while ensuring continued service for its European institutional clients through carefully selected strategic partnerships.

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