Yesterday (March 13) evening, HSBC Holdings announced that its UK segregated banking subsidiary HSBC UK Bank plc will acquire Silicon Valley Bank UK Limited (SVB UK Silicon Valley Bank UK) for a consideration of £1.。The assets and liabilities of the parent company of SVB UK are not included in this transaction.。The transaction is completed immediately and the acquisition will be funded from its own funds.。

HSBC Group Chief Executive Officer Qi Yaonian said: "This acquisition is of great strategic importance to our business in the UK.。This acquisition strengthens our commercial banking business and enhances our ability to serve innovative, fast-growing businesses in areas such as technology and life sciences in the UK and internationally.。"

In response, Goldman Sachs released a research report saying that HSBC Holdings bought SVB UK for £1, and according to available information, SVB UK had a pre-tax profit of £88 million last year, with about £5.5 billion in loans and £6.7 billion in deposits, and tangible assets expected to be about £1.4 billion.。

Goldman Sachs said that in the case of HSBC Holdings, the deal was small and the loans acquired represented only zero of the group's loans..7%, while deposits account for about 0% of group deposits..5%。In addition, there is no detailed information on the potential capital impact at this stage, and the Group expects to make a final calculation of the proceeds from the transaction in due course, as well as the £1 purchase consideration and £1.4bn of tangible assets implying a smaller capital gain.。

Goldman Sachs also said that HSBC Holdings UK Separated Bank has a large excess capital position, as of the end of last year, the full year had 77 billion pounds of excess deposits (loans of 204 billion pounds and deposits of 281 billion pounds), that the transaction is complementary to HSBC's UK commercial banking business, can enhance its ability to provide services to innovative companies in the field of technology and life sciences.。

UBS also released a research report saying that the Federal Reserve announced a bank term financing program to provide one-year loans backed by Treasuries, agency debt, MBS and other securities at a cost of overnight call rates plus 10 basis points at par.。UBS believes this should significantly reduce the need to be forced to sell securities at a loss。Despite the massive excess liquidity in banks, UBS expects the ECB and the Bank of England to face similar pressures as the Fed's loans, and the UK and Europe are expected to tighten bank liquidity regulation after the event。

In response to HSBC's £1 acquisition of SVB UK, UBS said the deal did not include any assets and liabilities of the parent company of SVB UK。Following the transaction, the Bank of England and the Treasury confirmed that "all deposits" with the bank were safe and reliable.。UBS forecasts HSBC Holdings' allocated returns of 7 in 2023 and 2024, respectively.8 per cent and 17 per cent, and said that HSBC's recent share price decline was due to profit-taking rather than a change in its outlook.。