HSBC Reports Profit Increase of £10.4 Billion Following Acquisition of UK Arm of Silicon Valley Bank.

According to recent filings, HSBC, the global financial giant, has reported a significant increase in profits, partially attributed to the acquisition of the UK arm of Silicon Valley Bank (SVB) in March 2023. The filings show that the bank made almost £10.4 billion ($13 billion) during the first three months of the year, indicating that the global banking system is in good health despite concerns about an impending crisis.

Three mid-sized US banks have gone out of business since March, which has jeopardized hundreds of billions of dollars held in personal and business accounts. SVB collapsed after a significant hole was discovered in its balance sheet, with Signature Bank following just days later. First Republic Bank lost around $100 billion in customer deposits in just a few days in March, leading to its collapse in April.

HSBC, which was founded in Hong Kong in 1865, has since evolved into an international financial services giant with a presence in most parts of the world. In the UK, HSBC owns First Direct and recently acquired the UK arm of Silicon Valley Bank, which has been absorbed into its operations. Overall, the bank serves 39 million people worldwide and 1.4 million businesses in 53 countries. Photo by N509FZ, Wikimedia commons.