HSBC Holdings Plc on March 13 announced that its UK ring-fenced subsidiary,

HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Limited (SVB UK) for £1. SVB UK had loans of around £5.5 billion and deposits of around £6.7 billion as on March 10, 2023.

For the financial year ending December 31, 2022, SVB UK recorded a profit before tax of £88 million. SVB UK's tangible equity is expected to be around £1.4 billion.

The 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. The transaction completes immediately.

The acquisition will be funded from existing resources, HSBC said in a statement.

Noel Quinn, HSBC Group CEO, 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.”