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May 2, 2023

SV Bank: HSBC says UK buyout boosts profit by $1.5 billion

Banking giant HSBC says its profits got a $1.5bn boost

HSBC, the London-headquartered lender, has reported strong Q1 profits, which include a "provisional gain of $1.5bn on the acquisition of Silicon Valley Bank UK Limited"

HSBC's CEO Noel Quinn said the company is committed to improving performance and maintaining cost discipline as well as paying shareholders their first quarterly dividend since 2019. The bank is also planning on buying back $2 billion in shares. However, the Canada sale of its business is likely to be delayed and go through early next year instead.

While Silicon Valley Bank and Signature Bank collapsed, and UBS bought out rival Credit Suisse, the bank's performance was strong. HSBC has faced pressure from its biggest shareholder, Chinese insurance giant Ping An, to spin off its Asian operation to increase the amount investors make out of the business there.

In Birmingham on Friday, HSBC's annual general meeting will vote on the proposal, which would face "formidable obstacles", including substantial economic and political hurdles.

Neil Hodgson Coyle
Neil Hodgson-Coyle
Editorial chief at TechNews180
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