(News Bulletin 247) – HSBC Holdings announced on Monday the acquisition, with immediate effect, of the British activities of the ailing American bank Silicon Valley Bank, SVB, for the symbolic sum of one pound sterling.
Noel Quinn, the chief executive of the banking giant, explains in a press release that the operation makes “strategic sense” by allowing his establishment to strengthen itself in the high-growth sectors of technologies and life sciences.
As of March 10, SVB UK posted outstanding loans of around 5.5 billion pounds for deposits of some 6.7 billion.
Over the past financial year, the subsidiary of SVB in the United Kingdom generated a pre-tax profit of 88 million pounds, on the basis of tangible equity estimated at around 1.4 billion pounds.
“We welcome SVB’s customers and look forward to helping them grow in the UK and around the world,” commented Noel Quinn, stressing that they could continue to bank as in accustomed.
Noel Quinn also welcomed the employees of SVB UK, saying he was delighted to work with them.
HSBC expects to provide an activity update on the acquisition in its next quarterly results release, scheduled for May 2.
Following this announcement, its action was generally stable on Monday in the first exchanges on the London Stock Exchange.
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