Silicon Valley Bank UK arm acquired by HSBC for one pound

Global banking giant HSBC Holdings is looking to rescue the UK-based branch of the failed Silicon Valley Bank with a new acquisition.

HSBC Official announced On March 13th, subsidiary HSBC UK Bank announced that it would acquire Silicon Valley Bank UK Limited for £1 (GBP), or $1.21.

As of 10 March 2023, SVB UK had around £5.5 billion ($6.7 billion) in loans and around £6.7 billion ($8.1 billion) in deposits, HSBC said in a statement.

For the financial year ending 31 December 2022, SVB UK posted a profit before tax of £88m ($107m). SVB UK’s tangible capital is expected to be around £1.4 billion ($1.7 billion).

“A final calculation of the profits arising from the acquisition will be provided in due course,” HSBC wrote, adding that the assets and liabilities of SVB UK’s parent company would be excluded from the transaction. It added that it will be funded by the resources of , and will be completed soon.

According to HSBC Group CEO Noel Quinn, the acquisition has “great strategic implications” for HSBC’s business in the UK, strengthening its commercial banking franchise and turning it into an innovative and fast-growing company. Strengthen our ability to provide services. he added:

“We look forward to welcoming SVB UK customers to HSBC and helping them grow in the UK and around the world. You can safely continue banking as usual, knowing that HSBC.”

The news comes shortly after U.S. authorities ordered SVB to cease operations on March 10, and several major crypto firms such as Circle and Coinbase have taken a toll on the banks, causing a devastating impact on the crypto market. A wave of panic ensued.

This is a work in progress and more information will be added as it becomes available.