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☆ HSBC net profit more than doubles in the first half, announces $2 billion share buyback
▼ + stars: | 2023-08-01 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +3 min

Noel Quinn CEO of HSBC HoldingsNet interest income for the first half stood at $18.3 billion, 36% higher year-on-year, while net interest margin came in 46 basis points higher at 1.70%. Solid second quarterFor the second quarter alone, HSBC beat analysts' expectations to report an 89% jump in pre-tax profit in the second quarter. Pre-tax profit for the quarter ended in June was $8.77 billion, beating expectations of $7.96 billion. Net profit was $6.64 billion, beating the $6.35 billion expected in analysts' estimates compiled by the bank, jumping 27% compared to the same period a year before. Total revenue for the second quarter came in at $16.71 billion, 38% higher than the $12.1 billion seen in the same period a year ago.

Persons: Bertha Wang, Noel Quinn, CNBC's, Quinn, —, there's Organizations: Silicon Valley Bank, HSBC Holdings, Bloomberg, Getty, HSBC, HSBC —, Revenue Locations: France, Silicon, Hong Kong, U.K

☆ HSBC CEO says SVB UK fitted our strategy to back entrepreneurs
▼ + stars: | 2023-06-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHSBC CEO says SVB UK fitted our strategy to back entrepreneursNoel Quinn, CEO of HSBC, speaks to CNBC's Arjun Kharpal about the bank's acquisition of Silicon Valley Bank UK.

Persons: Noel Quinn, CNBC's Arjun Kharpal Organizations: HSBC, Silicon Valley Bank UK Locations: Silicon

☆ HSBC says rebranded Silicon Valley Bank UK will maintain startup focus while targeting global growth
▼ + stars: | 2023-06-07 | by ( Jenni Reid | ) www.cnbc.com time to read: 1 min

Silicon Valley Bank UK will continue to serve startup businesses from "seed funding to IPO," the chief executive of its new owner, HSBC UK, said Tuesday. "We're going to protect what we've got," Ian Stuart told CNBC's Arjun Kharpal at the Money20/20 fintech conference in Amsterdam. "We are going to keep it ringfenced within our own ringfenced bank, it will have its own board, it will have its own risk policies, we are going to protect what it's got today." HSBC UK bought the London-headquartered subsidiary of Silicon Valley Bank for £1 ($1.21) in March after its U.S. parent company collapsed. Despite not having a major customer base in the U.K., hundreds of founders and VCs said the bank's failure would be highly damaging to the tech sector, and the government stepped in to facilitate a deal over the course of a weekend.

Persons: we've, Ian Stuart, CNBC's Arjun Kharpal, it's, VCs Organizations: Valley Bank, HSBC, HSBC UK, London, Silicon Valley Bank Locations: Amsterdam, Silicon

☆ We're going to protect what we've got in Silicon Valley Bank UK, new owner HSBC says
▼ + stars: | 2023-06-06 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're going to protect what we've got in Silicon Valley Bank UK, new owner HSBC saysIan Stuart, chief executive of HSBC UK, discusses plans for the rebranded Silicon Valley Bank UK following its hurried March takeover.

Persons: we've, Ian Stuart Organizations: Silicon Valley Bank UK, HSBC, HSBC UK, Valley Bank UK Locations: Silicon Valley

☆ HSBC bought Silicon Valley Bank UK in record time — here's how events unfolded
▼ + stars: | 2023-03-16 | by ( Silvia Amaro | ) www.cnbc.com time to read: +2 min

HSBC came to the rescue of Silicon Valley Bank UK in a crucial deal for the whole banking sector. Silicon Valley Bank — a U.S. lender with clients mostly in the tech and health-care startup world — was deemed insolvent by American regulators on Friday. Consequently, the Bank of England announced Friday that, "absent any meaningful further information," it would be placing Silicon Valley Bank UK into an insolvency procedure. More than 200 companies — depositors with SVB UK — wrote Saturday to the U.K.'s Treasury asking for help. They said that some would not be able to comply with payroll deadlines without accessing their deposits with SVB UK.

[1/3] U.S. President Joe Biden delivers remarks on the banking crisis after the collapse of Silicon Valley Bank (SVB) and Signature Bank, in the Roosevelt Room at the White House in Washington, D.C., U.S. March 13, 2023. Germany's Commerzbank (CBKG.DE) fell as much as 12.7%, while Credit Suisse (CSGN.S) hit a new record low after falling more than 15%. Dowding said he did not think that a lot of the issues affecting U.S. banks would be present in European lenders. It said Silicon Valley Bank UK had loans of around 5.5 billion pounds and deposits of around 6.7 billion pounds as of March 10. U.S. banks lost more than $100 billion in stock market value late last week following SVB's failure, while European banks have now lost a similar amount, a Reuters calculation showed.

☆ HSBC acquires British arm of stricken Silicon Valley Bank
▼ + stars: | 2023-03-13 | by ( Iain Withers | ) www.reuters.com time to read: +1 min

LONDON, March 13 (Reuters) - HSBC (HSBA.L) said on Monday it is acquiring the UK subsidiary of stricken Silicon Valley Bank for 1 pound, rescuing a key lender for technology start-ups in Britain. "This acquisition makes excellent strategic sense for our business in the UK," HSBC CEO Noel Quinn said in a statement. "No other UK banks are directly, materially affected by these actions, or by the resolution of SVBUK’s U.S. parent bank. As of March 10, Silicon Valley Bank UK Limited had loans of around 5.5 billion pounds and deposits of around 6.7 billion pounds, HSBC said. SVB UK's tangible equity is expected to be around 1.4 billion pounds, HSBC said.

The Silicon Valley Bank (SVB) logo is seen through a rain-covered window. LONDON — HSBC on Monday announced a deal to buy the U.K. subsidiary of the U.S. tech startup lender Silicon Valley Bank, which collapsed on Friday. HSBC confirmed that its U.K. ring-fenced subsidiary, HSBC UK Bank, had agreed to acquire SVB U.K. for £1 ($1.21). The sale, facilitated by the Bank of England in consultation with the U.K. Treasury, will protect the deposits of SVB U.K. clients, the Treasury said in a statement. "The U.K.'s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs," he added.

With assets of around 5.5 billion pounds and deposits of around 6.7 billion pounds, SVB UK is a minnow compared to HSBC. The situation was urgent because SVB UK had lost almost half of its deposits in the 48 hours leading up to its rescue, the source said. Officials from the Bank of England and Treasury along with board members from SVB UK were then locked in talks. HSBC also plans to inject 2 billion pounds of liquidity into SVB UK, a spokesperson for HSBC said. Advisory firm Rothschild, which advised SVB UK according to sources, also declined to comment.

The sale means UK startups and investors will be able to access their money. Like its US parent, SVB UK mostly served tech startups and their investors. Insider understands from a person close to SVB UK that there is some internal frustration at the bank run. The feeling is that SVB UK was sold off simply because of groupthink. That evening, it looked feasible that the government would allow SVB UK to collapse.

☆ 'A huge relief': Startups react to Silicon Valley Bank UK's HSBC rescue deal
▼ + stars: | 2023-03-13 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

An entrance to the Alphabeta Building, which houses the offices of UK unit of Silicon Valley Bank, in the City of London, UK, on Monday, March 13, 2023. LONDON — U.K. startups are breathing a sigh of relief Monday, after HSBC announced it would buy a subsidiary of collapsed U.S. tech startup lender Silicon Valley Bank. "I think I speak on behalf of U.K. start-ups when we say this is a huge relief," he said. "SVB UK has a decent balance sheet which enabled HSBC to do this deal," he told CNBC by phone. SVB UK reported profit before tax of £88 million for 2022.

☆ UK races to minimise SVB fallout amid reports of potential buyers
▼ + stars: | 2023-03-12 | by ( Andrew Macaskill | ) www.reuters.com time to read: +6 min

[1/2] A notice hangs on the door of Silicon Valley Bank (SVB) located in San Francisco, California, U.S. March 10, 2023. SoftBank-owned lender OakNorth Bank is weighing a bid to buy Silicon Valley Bank UK Ltd, a person with knowledge of the talks told Reuters, confirming a Sky News report. EXISTENTIAL THREATMore than 250 UK tech firm executives signed a letter addressed to Hunt on Saturday calling for government intervention and warned of an "existential threat" to the UK tech sector, a copy seen by Reuters shows. Hunt reiterated comments by the BoE that overall, Silicon Valley Bank had a limited presence in Britain and did not perform functions critical to the financial system. Sunak has said he wants to turn Britain into the "next Silicon Valley".

NEW YORK (Reuters) -U.S. authorities were preparing “material action” on Sunday to shore up deposits in Silicon Valley Bank (SVB) and stem any broader financial fallout from its sudden collapse, sources familiar with the matter told Reuters. Biden administration officials worked through the weekend to assess the impact of startup-focused lender SVB Financial Group’s failure on Friday, with a particular eye on the venture capital sector and regional banks, the sources said. REUTERS/Nathan FrandinoAnd amid increased withdrawals from other regional banks, U.S. officials are also keeping close watch on the wider sector. The S&P 500 regional banks index dropped 4.3% on Friday to end the week down 18%, its worst week since 2009. Signature Bank, First Republic Bank, PacWest Bank and Charles Schwab did not immediately respond to requests for comment.

March 12 (Reuters) - Bank of London has tabled an offer to Silicon Valley Bank UK, SVB's subsidiary, the company said on Sunday, adding that it had sent the proposals to British authorities, including the Treasury and the Bank of England. Bank of London, a clearing bank, is leading a consortium of investors including private equity funds, which has submitted what it described as formal proposals. "Silicon Valley Bank cannot be allowed to fail given the vital community it serves," Bank of London co-founder and CEO Anthony Watson said in a statement. "This is a unique opportunity to ensure the UK has a more diversified banking sector, whilst allowing continuity of service to SVB's UK client base," he said. Unlike other financial institutions, Bank of London does not lend and holds all of its deposits with the Bank of England.

☆ UK races to minimise damage from Silicon Valley Bank collapse
▼ + stars: | 2023-03-12 | by ( ) www.cnbc.com time to read: +1 min

"We will bring forward immediate plans to ensure the short-term operational and cashflow needs of Silicon Valley Bank UK customers are able to be met," Hunt said. Talks were held over the weekend involving Hunt, Sunak and Bailey to discuss the issues faced by British tech companies affected by the collapse, the British Treasury said. More than 250 UK tech firm chief executives signed a letter addressed to Hunt on Saturday calling for government intervention, a copy seen by Reuters shows. Hunt reiterated comments by the BoE that overall Silicon Valley Bank has a limited presence in Britain and does not perform functions critical to the financial system. The BoE said on Friday that it was seeking a court order to place SVB UK into an insolvency procedure.

☆ Bank of London weighs rescue bid for Silicon Valley Bank's UK arm, Sky News reports
▼ + stars: | 2023-03-11 | by ( ) www.reuters.com time to read: +1 min

March 11 (Reuters) - British clearing bank The Bank of London is considering a rescue bid for the UK arm of collapsed U.S. bank Silicon Valley Bank (SIVB.O), Sky News reported on Saturday. The British bank has appointed investment bank Perella Weinberg Partners to advise it on its interest in Silicon Valley Bank UK Limited (SVB UK), the report said, citing a source familiar with the matter. The Bank of London and SVB did not immediately respond to a Reuters' request for comment. The rout in SVB's stock, which began on Thursday, has spilled over into other U.S. and European banks. U.S. banks have lost over $100 billion in stock market value and European banks have shed another $50 billion in value over the past two days, according to a Reuters calculation.

☆ Bank of England seeks to wind up Silicon Valley Bank's UK arm
▼ + stars: | 2023-03-11 | by ( ) www.cnbc.com time to read: +1 min

The Bank of England said on Friday that it was seeking a court order to place Silicon Valley Bank UK Limited into an insolvency procedure, after U.S. regulators took over its parent company, SVB Financial Group, earlier in the day. "SVB UK has a limited presence in the UK and no critical functions supporting the financial system. Silicon Valley Bank UK said earlier on Friday that it was a standalone entity with an independent board of directors, ring-fenced from the parent company and other subsidiaries. The rout in SVB's stock, which began on Thursday, has spilled over into other U.S. and European banks. U.S. banks have lost over $100 billion in stock market value and European banks shed another $50 billion in value over the past two days, according to a Reuters calculation.

☆ Bank of England puts UK arm of Silicon Valley Bank into resolution - FT
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +1 min

March 10 (Reuters) - The Bank of England has moved to put the UK arm of Silicon Valley Bank, a unit of SVB Financial Group (SIVB.O), into resolution after it applied for 1.8 billion pounds ($2.17 billion) of liquidity as its parent company collapsed, the Financial Times reported on Friday. The Prudential Regulation Authority, which oversees the bank's UK arm, believes it cannot be a viable standalone operation following SVB's takeover by U.S. regulators, the report added. The central bank declined to comment on the report while the Prudential Regulation Authority and Silicon Valley Bank UK did not immediately respond to Reuters' requests for comment. Silicon Valley Bank UK said earlier today it is a standalone entity with an independent board of directors, ring-fenced from the parent company and other subsidiaries. ($1 = 0.8314 pounds)Reporting by Kanjyik Ghosh in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

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