Silicon Valley Bank (SVB) UK has been bought by HSBC in a transaction facilitated by the UK Government and Bank of England, following the collapse of SVB in the US.
Following the deal, customers of SVB UK will be able to access their deposits and banking services as normal from today, HM Treasury confirmed in a statement.
UK Chancellor Jeremy Hunt said that no taxpayer money has been used in the sale.
HSBC UK Bank bought the UK subsidiary of the US bank for £1.
As of 10 March 2023, SVB UK had loans of around £5.5 billion and deposits of £6.7 billion, and recorded pre-tax profits of £88 million for the financial year ending 31 December 2022.
Noel Quinn, HSBC Group chief executive officer, 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.”
The transaction was facilitated by the Bank of England, in consultation with the Treasury, using powers granted by the Banking Act 2009, which was introduced after the financial crisis “to safely manage the failure of banks”.
Hunt said: “The UK’s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs. I said yesterday that we would look after our tech sector, and we have worked urgently to deliver on that promise and find a solution that will provide SVB UK’s customers with confidence.
“Today the government and the Bank of England have facilitated a private sale of Silicon Valley Bank UK; this ensures customer deposits are protected and can bank as normal, with no taxpayer support. I am pleased we have reached a resolution in such short order.”
The Chancellor added: “HSBC is Europe’s largest bank, and SVB UK customers should feel reassured by the strength, safety and security that brings them.”