HSBC Buys Silicon Valley Bank In UK For IDR 18,704

JAKARTA - HSBC Holding Plc announced that its UK subsidiary HSBC UK Bank Plc acquired Silicon Balley Bank UK Limited (SVB UK) for 1 Pound or IDR 18,704 (exchange rate of IDR 18,704.29 per pound.

HSBC Group CEO Noel Quinn said this acquisition was very strategic for its banking business in the UK. This strengthens HSBC's commercial banking franchise.

"This increases our ability to serve innovative and rapidly growing companies, including in the technology and life science sector, in the UK and internationally," he quoted the HSBC website, Jakarta, March 14.

He said the company welcomed SVB UK customers to HSBC and hoped to help them develop in the UK and around the world.

Later, SVB UK customers can continue to carry out banking transactions as usual and safe. this is because they know that their savings are supported by HSBC's strength, safety and security.

"We warmly welcome SVB UK colleagues to HSBC, we are very excited to start working with them," he said.

As is known, SVB UK has a loan of approximately 5.5 billion and deposits of around 6.7 billion as of March 10, 2023.

Meanwhile, at the end of 31 December 2022, SVB UK recorded a profit before tax of 88 million. In fact, SVB UK's tangible equity is estimated at around 1.4 billion.

Later, the final calculation of the profits arising from the acquisition will be given in due course. The assets and obligations of the parent company SVB UK are excluded from the transaction. This announcement says that the transaction will be completed soon where the acquisition will be funded from existing resources. HSBC will notify shareholders of the acquisition in the first quarter of 2023 results on May 2, 2023.