LUXEMBOURG’S VP Bank yesterday revealed it is buying the private banking arm of HSBC’s German subsidiaries for an undisclosed sum.
The private banking activities of HSBC Trinkaus and Burhardt and of HSBC Trinkhaus Investment Managers have assets under management of €1.5bn, (£1.3bn) and the fund business has €700m under administration.
Around 20 staff are expected to make the move over to VP Bank.
The transaction is expected to be completed in the fourth quarter.
The move is part of a wider plan by the HSBC group to cut back on non-core businesses around the world – it has cut back in countries where it lacks scale, and sold or closed dozens of units.
And it also fits with a wider trend of large banks exiting private banking services. Lloyds Banking Group for instance has spent recent months selling private banking units in countries like Switzerland.