HSBC Acquires Silicon Valley Bank UK for a Pound: Report
•HSBC has reportedly purchased Silicon Valley Bank UK Limited (SVB UK) for £1 ($1.20).
•Silicon Valley Bank had loans of approximately $6.7 billion and deposits of around $8.1 billion as of March 10, 2023; it ended last year with a profit of $106 million (before tax).
•Noel Quinn – CEO of HSBC – commented that the acquisition “makes excellent strategic sense” and will strengthen their commercial banking franchise in the UK.
HSBC to Acquire SVB UK for £1
Britain’s leading bank – HSBC – plans to purchase SVB UK for approximately $1.20. According to recent coverage, HSBC will acquire SVB’s UK unit for a little over a dollar.
Silicon Valley Bank had loans of approximately $6.7 billion and deposits of around $8.1 billion as of March 10, 2023; it ended last year with a profit of $106 million (before tax), while its tangible equity is expected to be nearly $1.7 billion. All assets and liabilities belonging to the parent companies of SVB UK are excluded from the deal with HSBC.
HSBC Comments on Acquisition
Noel Quinn – CEO of Britain’s biggest bank – commented: „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.“ He explained that SVB UK clients will be subject to maximum protection and can rely on HSBC’s extensive experience across markets worldwide when it comes to financial services solutions tailored specifically for their needs.
Quinn further assured customers that all existing arrangements between them and Silicon Valley Bank remain unchanged: „We are committed to protecting customers‘ interests throughout this transition period.“ Moreover, he added that customers may rest assured knowing they can continue relying on existing agreements made prior to this acquisition as well as any other products or services provided by both banks moving forward.
HSBC has reportedly acquired Silicon Valley Bank’s U K unit for a little over one pound sterling ($1.20). The latter had loans amounting up to approximately six point seven billion dollars ($6,.7 billion) plus deposits valued at eight point one million dollars ($8,.1 million). Noel Quinn – CEO at Britain’s largest bank – has noted that this move makes ‘excellent strategic sense’ ensuring greater customer protection as well as enhancing their commercial banking capabilities within the United Kingdom market space overall..