in

HSBC Acquires Failed Silicon Valley Bank UK for £1

HSBC Holdings Plc on Monday, announced that it has acquired the Silicon Valley Bank UK Limited for £1.

In a statement released on Monday, HSBC said that the acquisition will strengthen its operations in the UK and that the transaction “completes immediately,” adding that “the acquisition will be funded from existing resources.”

HSBC Group CEO, Noel Quinn, said, “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.”

The statement also revealed that “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.

Loading...

“Final calculation of the gain arising from the acquisition will be provided in due course. The assets and liabilities of the parent companies of SVB UK are excluded from the transaction.”

HSBC also stated that it will provide an update to shareholders on the acquisition when it releases its first-quarter 2023 results on May 2, 2023.

On Friday, regulators shut down SVB Financial Group and its subsidiary Silicon Valley Bank, seizing deposits in the worst US banking failure since the 2008 financial crisis and the second-largest ever.

SVB’s demise began on Wednesday, when it stunned investors by announcing that it needed to raise $2.25 billion to shore up its balance sheet. Customers withdrew $42 billion in deposits by the end of Thursday, according to a California regulatory filing.

Written by PH

Leave a Reply

Your email address will not be published. Required fields are marked *

Nigeria’s First Female Senator, Franca Afegbua, Is Dead

Ex-Super Falcons Coach Ismaila Mabo Dies At 79