Summary
- HSBC Holdings plc, a British multinational universal bank, has acquired SVB UK subsidiary for £1 following the takeover of Silicon Valley Bank by the United States Federal Deposit Insurance Corporation (FDIC).
- SVB UK had loans of around £5.5 billion and deposits of around £6.7 billion as of March 10, 2023.
- The US federal government and the UK administration have stepped in to save the banking crisis, with the Biden administration pledging $25 billion to bolster SVB banking operations.
HSBC Acquires SVB UK Subsidiary for £1
Following the takeover of Silicon Valley Bank by the United States Federal Deposit Insurance Corporation (FDIC) over the weekend, SVB’s UK subsidiary has been acquired by HSBC Holdings plc, a British multinational universal bank, and financial services holding company, for £1.
Bank Customers Can Now Bank Through HSBC
According to the announcement, SVB UK had loans of around £5.5 billion and deposits of around £6.7 billion as of March 10, 2023. Reportedly, SVB UK recorded a profit before tax of £88 million for the financial year ending 31 December 2022. HSBC Holdings noted that SVB UK’s tangible equity is expected to be around £1.4 billion. As such, the final calculation of the gain arising from the acquisition will be provided later. Noel Quinn, HSBC Group CEO said that this acquisition makes excellent strategic sense for its business in the United Kingdom and enhances its ability to serve innovative and fast-growing firms in the country.“We welcome SVB UK’s customers to HSBC and look forward to helping them grow in the UK and around the world,“ Quinn added.