HSBC Holdings has announced this Monday that its subsidiary in the United Kingdom, HSBC UK Bank, will acquire Silicon Valley Bank UK Limited (SVB UK) for 1 pound sterling (1.13 euros).

As of March 10, 2023, SVB UK had loans of around 5,500 million pounds (6,218 million euros) and deposits of around 6,700 million pounds (7,575 million euros), while in the last year it registered a profit before taxes of 88 million pounds (99.5 million euros).

The assets and liabilities of SVBUK’s parent companies are excluded from the transaction, which is completed immediately and will be financed from existing resources, HSBC said.

“This acquisition makes excellent strategic sense for our UK business,” HSBC CEO Noel Quinn said in a statement, stressing the protection for depositors of the SVB’s British subsidiary.

“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,” he added.

As explained by the largest banking entity of the Old Continent by assets, it is expected that the tangible capital of SVB UK will be around 1,400 million pounds sterling (1,583 million euros), adding that the final calculation of the profit derived from the acquisition will be provided in due course.