London Daily

Focus on the big picture.
Friday, Jun 20, 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

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×