HSBC announced that its UK based subsidiary, HSBC UK Bank, is acquiring Silicon Valley Bank UK (SVB UK) for GBP 1 (Rs 99). According to media reports, SVB UK had loans of around GBP 5.5 billion and deposits of around GBP 6.7 billion as on March 10, 2023.
Last financial year, ended in December 2022, SVB UK recorded a profit before tax of GBP 88 million. Furthermore, SVB UK’s tangible equity is expected to be around GBP 1.4 billion. HSBC said in a statement that the final calculation of the gain arising from the acquisition will be provided in due course. The assets and liabilities of the parent companies of SVB UK are excluded from the transaction. The acquisition will be funded from existing resources.
“This acquisition makes excellent strategic sense for our business in the UK. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally. We welcome SVB UK’s customers to HSBC and look forward to helping them grow in the UK and around the world. SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC. We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them,” said, Noel Quinn, HSBC Group CEO.