HSBC rebrands SVB UK acquisition as HSBC Innovation Banking

HSBC has unveiled HSBC Innovation Banking, a new standalone entity that includes the former Silicon Valley Bank UK (SVB UK), newly formed innovation teams in the US, Israel and Hong Kong, as part of a major push into technology and life sciences.

The new unit aims to deliver a globally-connected and specialised banking proposition to support innovation businesses and their investors.HSBC Innovation Banking supports a range of businesses from early-stage growth ones to late-stage public and private corporates, and connect them with its global capabilities, including investment banking, private banking and asset management services.

According to the release, around a dozen bankers in Hong Kong are being onboarded to complement HSBC’s existing new economy expertise serving Hong Kong and Asia-Pacific. Meanwhile, HSBC Innovation Banking UK has over 650 employees in the UK and Nordics. In the US, an innovation team of more than 40 has been assembled across the Bay Area, Boston and New York City. In Israel, more than 20 new bankers will be based in Tel Aviv.

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HSBC chief executive Noel Quinn said that the bank had a world-class team focused on innovation companies, their founders and their investors. “We will protect this specialism and take it to the next level by combining these capabilities with our financial strength and global reach,” he said.

“HSBC Innovation Banking will unlock new possibilities for UK innovation businesses to boost their growth and compete on the global stage. From first-time founders to the funds that back them, the innovation economy relies on us for deep expertise and the connections they need to build world-leading companies,” said Erin Platts, CEO of HSBC Innovation Banking UK.

The new division comes as HSBC’s UK ring-fenced subsidiary, HSBC UK Bank, acquired SVB UK for US$1.25 in March, saving deposits of British tech firms that hold money at the lender. 

As at 10 March, SVB UK had loans of around US$6.89bn and deposits of around US$8.4bn. For the financial year ending 31 December 2022, SVB UK recorded a profit before tax of US$110m. SVB UK’s tangible equity is expected to be around US$1.75bn. Final calculation of the gain arising from the acquisition will be provided in due course. The assets and liabilities of the parent companies of SVB UK are excluded from the transaction. The transaction completes immediately. The acquisition will be funded from existing resources, according to HSBC's official statement. 

MARKETING-INTERACTIVE has reached out to HSBC for more information.

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