HSBC has announced it has acquired Silicon Valley Bank Limited UK for a pound, following a weekend of round-the-clock negotiations.
It comes after two crypto-friendly banks – Silvergate and Signature – fell into demise. SVB is also heavily connected to the sector, sporting a wealth of crypto start-ups and VCs among its customer base.
In a statement released this morning, HSBC told the City that the nominal one pound transaction for the UK operation “completes” immediately, and the entire acquisition will continue to be funded through existing resources.
HSBC stated: “As at March 10 2023, SVB UK had loans of around £5.5bn and deposits of around £6.7bn. For the financial year ending December 31 2022, SVB UK recorded a profit before tax of £88m. SVB UK’s tangible equity is expected to be around £1.4bn. Final calculation of the gain arising from the acquisition will be provided in due course.”