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HSBC Acquires Silicon Valley Bank UK for £1

HSBC Acquires Silicon Valley Bank UK for £1

(13 March 2023 - United Kingdom) HSBC has stepped in to acquire the UK arm of Silicon Valley Bank.

The failure of SVB UK over the weekend followed repeated assurances that it would not follow its parent company into insolvency as it was a standalone entity with a separate balance sheet.

Its subsequent collapse spread a fresh wave of panic about the implications for technology companies reliant on it for funding and the wider banking system in general.

HSBC is buying the beleagured bank for a symbolic token of just £1 and is reportedly set to inject $2.1 billion to keep the business operational.

As of 10 March 2023, SVB UK had loans of around £5.5bn and deposits of around £6.7bn. For the financial year ending 31 December 2022, SVB UK recorded a profit before tax of £88m. SVB UK’s tangible equity is expected to be around £1.4bn.

Noel Quinn, HSBC Group CEO, says: “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."

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