A prominent banking solution-providing platform HSBC Holdings Plc has recently announced that its UK-based subdivision is purchasing crypto-friendly Silicon Valley Bank UK Limited. The acquisition deal is being carried out for up to £1. In the declaration, the platform mentioned that the cumulative loans of SVB UK had been nearly £5.5bn worth. Along with that, it added that the value of the total deposits of SVB was almost £6.7bn.
HSBC Announces Acquiring SVB UK
The company moved on to discuss the profits recorded by the banking platform. As per HSBC, SVB UK witnessed a profit in advance of the tax equaling £88m. The tangible equity of SVB UK is anticipated to be approximately £1.4bn. The conclusive calculation of the profit coming from the respective acquisition contract is to be offered in due time.
HSBC disclosed that the liabilities and the assets of SVB UK’s parent entities are not included in the transaction. The transfer will be accomplished rapidly. The acquisition contract is planned to get funded from the present resources. While talking about this, HSBC Group’s chief executive officer Noel Quinn, also remarked on the move. He stated that this acquisition deal makes a remarkable systematic sense related to the business being operated within the jurisdiction of the United Kingdom.
In addition to this, he added, this fortifies the platform’s commercial banking franchise. In his words, this also plays a significant role in enhancing the company’s capability to offer innovative as well as rapidly-expanding entities. Such companies are related to life-science and technology sectors within and outside the UK’s jurisdiction.
The CEO disclosed that the platform welcomes consumers from SVB UK to HSBC. According to him, the firm is looking forward to assisting them in spreading the user base in the UK and other parts of the world. The executive asserted that the clients of SVB UK will be provided with seamless services.
The CEO Invites SVB Users and Staff to HSBC
This means that they can keep on using the banking institution just as they did before. Apart from that, they will be offered complete knowledge about their deposits. They will also be assured about the safety of their deposits along with the provision of security, safety, and strength-related facilities offered by HSBC. In the end, the CEO invited the colleagues from SVB UK to HSBC to operate in mutual harmony.