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We’ve acquired the UK arm of US lender Silicon Valley Financial institution (SVB).
“SVB UK clients can proceed to financial institution as traditional, protected within the information that their deposits are backed by the power, security and safety of HSBC,” mentioned Noel Quinn, our Group Chief Govt.
HSBC UK Financial institution, which is the British-based ring-fenced subsidiary of HSBC, bought SVB UK for £1. The deal brings the employees, property and liabilities of SVB UK into the HSBC portfolio, however excludes these of SVB UK’s dad or mum corporations.
On Friday, US regulators shut down Silicon Valley Financial institution, which specialised in lending to expertise corporations. It’s the largest failure of a US financial institution since 2008.
SVB UK in numbers
As at 10 March 2023, SVB UK had loans of round £5.5bn and deposits of round £6.7bn. For the monetary 12 months ending 31 December 2022, SVB UK recorded a revenue earlier than tax of £88m. SVB UK’s tangible fairness is anticipated to be round £1.4bn.
“This acquisition makes wonderful strategic sense for our enterprise within the UK,” mentioned Noel. “It strengthens our industrial banking franchise and enhances our capability to serve revolutionary and fast-growing corporations, together with within the expertise and life science sectors, within the UK and internationally.”
Ian Stuart, HSBC UK Chief Govt, added: “We’re proud that we’ve been in a position to act shortly to take this motion supporting the UK’s fast-growing and dynamic expertise sector and the necessary function that it performs within the UK financial system.”
In its media launch asserting the deal, the UK Treasury mentioned that taxpayer cash was not concerned within the transaction and buyer deposits had been protected.
Chancellor Jeremy Hunt welcomed the sale to HSBC and mentioned it ought to convey reassurance and confidence to SVB UK clients.
“The UK’s tech sector is genuinely world-leading and of big significance to the British financial system, supporting a whole bunch of hundreds of jobs,” he added. “I’m happy we’ve reached a decision in such quick order.”
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