The transaction will be funded from HSBC’s existing resources.
The assets and liabilities of the parent companies of SVB UK are excluded from the acquisition.
HSBC will update shareholders on the acquisition at its Q1 2023 results on 2nd May 2023.
This comes as SVB was officially closed on Friday (10th March) by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
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For the financial year ending 31 December 2022, SVB UK recorded a profit before tax of £88m, and its tangible equity is expected to be around £1.4bn.
Noel Quinn, HSBC Group’s CEO, said: “This acquisition makes excellent strategic sense for our business in the UK, as 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.
“SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC.
“We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them.”
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