08:49 AM EDT, 06/27/2025 (MT Newswires) -- HSBC ( HSBC ) shares were over 1% higher premarket Friday after the lender said its HSBC Continental Europe unit has agreed to sell its custody business in Germany to BNP Paribas.

Financial terms were not disclosed.

HSBC ( HSBC ) said the German unit provides custody, clearing, and depository services for German institutional investors. It also said its custody staff, as well as its assets and clients, will transfer to BNP Paribas, which will be phased in beginning in early 2026.

The completion of the deal is contingent on customary regulatory and anti-trust approvals, as well as the conclusion of negotiations with the Works Council in Germany, the lender said.