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Following a weekend auction, HSBC has emerged as the buyer of Silicon Valley Bank’s UK arm.
HSBC’s ring-fenced subsidiary, HSBC UK Bank, has acquired Silicon Valley Bank (SVB) UK for 1 British pound ($1.2), according to a statement.
SVB UK had loans and deposits of around 5.5 billion pounds and 6.7 billion pounds, respectively. For the financial year ending 31 December 2022, SVB UK recorded a pre-tax profit of 88 million pounds. Tangible equity is expected to be around 1.4 billion pounds.
Over the weekend, the US Federal Deposit Insurance Corporation (FDIC) reportedly held an auction for SVB’s assets with final bids due on Sunday. FDIC placed SVB under receivership on March 10.
At the time of its failure, SVB was Silicon Valley’s leading lender by deposits and the 16th largest lender overall in the US.
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, said HSBC group CEO Noel Quinn.