HSBC acquires Silicon Valley Bank UK Limited
HSBC announced that its UK ring-fenced subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Limited (SVB UK) for £1.
- As of Mar 10 2023, SVB UK had loans of around £5.5 billion and deposits of around £6.7 billion.
- For the financial year ending Dec 2022, SVB UK recorded a profit before tax of £88 million.
- SVB UK’s tangible equity is expected to be around £1.4 billion.
- The transaction completes immediately.
- 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.” – HSBC Group CEO, Noel Quinn.
The British branch had 3,300 clients in the UK, among them startup companies and venture capital funds. However, many of the customers held deposits below the £85,000 threshold covered by government insurance.
HSBC will update shareholders on the acquisition at its Q1 2023 results on May 2, 2023.