HSBC acquires Silicon Valley Bank UK for a pound (report)

HSBC acquires Silicon Valley Bank UK for a pound (report)

HSBC Holdings-the largest banking institute in the United Kingdom-is reportedly buying Silicon Valley Bank UK Limited (SVB UK) for £ 1.20).

The Silicon Valley Bank made headlines last week and unveiled liquidity problems and balance sheet holes. This triggered great panic for risk capital companies, which reports reported to investors to deduct their funds from the bank. After she had not managed to raise the necessary capital to stay afloat, the California financial supervisory authorities closed the SVB.

• according to the latest Cover , the British unity of SVB will acquire SVB for a little more than one dollar. As of March 10, 2023, the latter had loans of around $ 6.7 billion and deposits of around $ 8.1 billion.
• SVB UK completed the past year with a profit of $ 106 million (before taxes), while material equity is expected to be almost $ 1.7 billion.
• All assets and liabilities of the parent companies of SVB UK are excluded from the transaction with HSBC. Noel Quinn - CEO of the largest British bank - commented:

"This acquisition is strategically very useful for our business in Great Britain. It strengthens our commercial banking business and improves our ability to operate innovative and rapidly growing companies, including in the areas of technology and biow sciences, in Great Britain and International."

• He explained that SVB UK customers are subject to maximum protection and, as usual, do banking as usual.
• HSBC promised to keep the shareholders up to date when publishing the results of the first quarter in early May.
• different The turbulence in the USA, the bank of England insured that the British banking system was not damaged according to the latest events:

"No other British bank is directly and significantly affected by these measures or the processing of the US mother bank of SVB UK. The broader British banking system remains safe, solid and well capitalized."

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