HSBC Continental Europe has agreed to sell its German custody business to BNP Paribas, as part of a broader simplification strategy, the bank announced on Friday.
HSBC Continental Europe to Sell German Custody Business to BNP Paribas
The deal, which is still subject to regulatory and antitrust approvals as well as negotiations with the Works Council in Germany, will see all custody staff, assets and clients transfer to BNP Paribas.
HSBC said a phased transition is expected to begin in early 2026.
The custody unit being divested provides domestic custody, clearing and depository services to German institutional clients.
The move is said to align with HSBC’s plan to sharpen its focus on areas of strategic advantage.
“HSBC is focused on increasing its leadership and market share in the areas where it has a clear competitive advantage, and where it has the greatest opportunity to grow and support its clients,” the bank said.
Announced in October 2024, HSBC’s strategy aims to consolidate operations and focus on its international network, particularly in Asia and the Middle East, while offering custody and fund services in Europe through its strategic hubs in London, Ireland and Luxembourg.
The transaction is expected to support HSBC’s ambition to be the leading corporate and institutional bank for international clients in Germany and Europe.
HSBC added that its strategic review of the German fund administration business remains ongoing.
