Silicon Valley Bank UK arm Acquired by HSBC for One Pound
HSBC's UK arm has acquired Silicon Valley Bank UK Limited for a nominal fee of £1, in a move that strengthens its commercial banking franchise and ability to serve innovative and fast-growing firms.
HSBC’s UK subsidiary made the announcement about the acquisition of Silicon Valley Bank UK Limited (SVB UK) on March 13.
The move follows the recent shutdown of SVB by US authorities on March 10, which caused panic in the crypto markets due to some major crypto companies like Circle and Coinbase having significant exposure to the bank.
As of March 10, 2023, SVB UK had loans of approximately £5.5 billion ($6.7 billion) and deposits of around £6.7 billion ($8.1 billion). HSBC stated that the acquisition will be funded from existing resources and will be completed immediately.
For the financial year ending December 31, 2022, SVB UK recorded a profit before tax of £88 million ($107 million). Its tangible equity is expected to be around £1.4 billion ($1.7 billion).
According to HSBC Group CEO Noel Quinn, the acquisition makes “excellent strategic sense” for HSBC’s business in the United Kingdom, strengthens its commercial banking franchise, and enhances its ability to serve innovative and fast-growing firms. He added that SVB UK’s customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety, and security of HSBC.
READ MORE: Bitcoin Price Soars Amid SVB Collapse
The financial terms of the acquisition have yet to be disclosed. Still, HSBC has indicated that the assets and liabilities of the parent companies of SVB UK are excluded from the transaction. The company stated that the final calculation of the gain arising from the acquisition will be provided in due course.
HSBC is among the world’s largest banking and financial services organizations, with a network covering over 65 countries and territories. With the acquisition of SVB UK, HSBC aims to strengthen its position in the UK market and help SVB UK’s customers grow both in the UK and internationally.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
