HSBC Group has entered into an agreement with Westpac to acquire its sub-custody business in Australia and New Zealand for approximately $112.5m.

HSBC is a global market leader in sub-custody services, operating in 37 markets. The bank provides securities services to global custodians, fund managers, broker dealers and other financial institutions worldwide, and services client sub-custody assets of over $1 trillion .

Shaun Wallis, chief executive officer, HSBC Bank Malta plc said: “This is a major global business for HSBC which we also undertake here in Malta for overseas institutional clients wishing to invest in Malta. Our increased presence in Australasia will help those Maltese institutions with clients invested in Australia or New Zealand.”

The acquisition is strategically important, making the Australasian market the third largest by assets among HSBC’s sub-custody businesses in the Asia-Pacific region.