Saudi Press

Saudi Arabia and the world
Monday, Jun 02, 2025

HSBC says UK buyout boosted profit by $1.5bn

HSBC says UK buyout boosted profit by $1.5bn

Banking giant HSBC says its profits got a $1.5bn (£1.2bn) boost from the purchase of collapsed Silicon Valley Bank's British business (SVB UK).
Europe's biggest bank posted a pre-tax profit of $12.9bn for the three months to the end of March.

That is more than three times the amount it made for the same time last year.

In March, HSBC bought SVB UK for a nominal £1 ($1.25), in a deal led by the government and the Bank of England.

The London-headquartered lender said the profit included a "provisional gain of $1.5bn on the acquisition of Silicon Valley Bank UK Limited".

"We remain focused on continuing to improve our performance and maintaining tight cost discipline, but we also saw an opportunity to invest in SVB UK to accelerate our growth plans," group chief executive Noel Quinn said.

The bank also got a boost from the reversal of its plan to write-off $2.1bn due to the sale of its French business, as that deal may no longer be completed.

HSBC announced its first quarterly payout to shareholders since before the pandemic in 2019 and said it would buy back $2bn of its shares.

It also said the completion of the sale of its business in Canada is likely to be delayed.

The planned $10bn sale, which was originally expected to be completed by the end of this year, is now likely to go through early next year.

The proposed deal is a key part of its strategy to pull back from slow-growing Western markets.

HSBC's strong performance comes against the backdrop of the global banking sector being rocked by the collapse of Silicon Valley Bank and Signature Bank in March and the forced buyout by Swiss banking giant UBS of rival Credit Suisse.

On Monday, US regulators seized First Republic Bank and sold its assets to Wall Street giant JPMorgan Chase.

The move was aimed to resolve the biggest failure since of a US bank since the 2008 global financial crisis and draw a line under weeks of turmoil in the industry.

In recent months, pressure has grown on HSBC from its biggest shareholder, Chinese insurance giant Ping An.

Ping An has called for HSBC to spin off its Asian operation to increase the amount investors make out of the business there.

HSBC is still run from its headquarters in London but makes the majority of its profits in Asia. These profits effectively subsidise some of the bank's loss-making operations in Europe and the US.

Ping An has argued that this is unfair and its solution is to break up HSBC, giving Asian investors a larger share of the profits.

"If you look at HSBC's share price for the past eight years, Ping An's investment hasn't been a particularly good one. A break-up may enhance the value of the bank for shareholders in Asia," says Kenny Wen, head of investment at KGI Asia in Hong Kong.

HSBC has urged its shareholders to vote against the proposal at its annual general meeting, which is due to take place in Birmingham on Friday.

"Currently HSBC clearly has not earned the right to simply bat away calls for change," Manus Costello from Autonomous Research in London said.

A break-up, however, would face "formidable obstacles, including significant economic and political hurdles," he added.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
×