BNP Paribas Makes Power Move: Acquires HSBC’s German Custody & Depositary Bank in Strategic Expansion

BNP Paribas just flexed its European dominance—snatching HSBC’s German custody and depositary banking arm in a deal that redefines the region’s financial chessboard.

Why it matters: Custody isn’t glamorous, but it’s the backbone of institutional finance. Control the pipes, control the flow.

The subtext: HSBC’s retreat from Germany signals another pivot away from ‘legacy’ markets—while BNP doubles down on continental supremacy. Guess who’s laughing all the way to the Bundesbank?

Bonus jab: Another day, another bank ‘streamlining operations’ (read: cutting costs to please shareholders). How revolutionary.

BNP Paribas tnnounces that its Securities Services business, a leading global custodian with EUR 14.3 trillion in assets under custody1, has entered an agreement with HSBC for the acquisition of the custody and depositary bank business of HSBC Continental Europe S.A., Germany, subject to regulatory approvals.

The transaction will strengthen BNP Paribas’ position as a leading custodian and top depositary bank in Germany2, supporting its targeted growth strategy in the region, notably in the institutional funds and financial intermediaries segments. Through this acquisition, the Securities Services business, part of the broader BNP Paribas Corporate and Institutional Banking division, will also build out its client franchise by expanding its products and services for insurance companies in Germany.

The agreement provides for the seamless transfer of the services currently provided by HSBC Continental Europe S.A., Germany to BNP Paribas’ Securities Services business in Germany.

Patrick Colle, Head of Securities Services & Chairman of Financial Institutions Coverage, BNP Paribas, commented: “As we continue to strengthen our global-local, integrated bank model at the service of our institutional client franchise, this transaction underpins our strategic goal to expand our presence and capabilities in targeted markets, both in Europe and globally. The combination of our on-the-ground expertise in all major markets and our broadening offering enables us to build upon our leadership while reinforcing our role as a long-term trusted partner to our clients.”

Lutz Diederichs, CEO of BNP Paribas Germany, said: “With this acquisition, we are further expanding the strong position of the BNP Paribas Group in Germany as one of our Core markets. It is part of our growth strategy, which also includes targeted acquisitions in selected areas. Our clients benefit from our broad range of services across twelve different business lines, which is unique in the German market and ranges from Global Markets, via Global Banking to Wealth Management.”

Thorsten Gommel, Regional Head of Germany, Austria, Netherlands & Nordics, Securities Services, BNP Paribas, stated: “Harnessing our strong business momentum in the German market, we have great ambitions in further growing our operations within the region, both in terms of footprint and product offering. This acquisition is the perfect opportunity to continue to scale up our expertise and innovation capacity to provide our clients with industry-leading services.”

As part of the agreement, the custody business staff employed at HSBC Continental Europe S.A., Germany will transfer to BNP Paribas’ Securities Services business in Germany. The implementation of the agreement is expected to commence in early 2026 through a phased client migration.

Source: BNP Paribas