Silicon Valley Bank, HSBC to acquire UK assets for £1

The assets and liabilities of Svb UK’s parent companies are excluded from the transaction

HSBC Holdings has announced that its UK subsidiary, HSBC UK Bank, will acquire Silicon Valley Bank UK Limited (SVB UK) for £1 (€1.13). As at 10 March 2023, Svb UK had loans of around £5.5 billion (€6.218 billion) and deposits of around £6.7 billion (€7.575 billion), while in the last financial year it reported a profit before tax of 88 million pounds (99.5 million euros).

The assets and liabilities of SVB UK’s parent companies are excluded from the transaction, which is being completed immediately and will be funded from existing resources, HSBC said. “This acquisition makes excellent strategic sense for our UK business,” said Noel Quinn, chief executive of HSBC, emphasizing the depositor protection of SVB’s UK branch.

Svb UK customers can continue banking as usualconfident that their deposits are backed by the strength, safety and security of HSBC,” he added. According to HSBC, SVB UK’s tangible net worth is expected to be around £1.4bn (€1.583bn), adding that the final calculation of the capital gain from the acquisition will be provided in due course.