HSBC posted today its financial report for Q1 2023.
HSBC’s profit before tax increased by $8.7 billion to $12.9 billion. This is because an impairment (loss) of $2.1 billion that was originally created for the planned sale of its retail banking operations in France was reversed, due to uncertainty over the completion of the sale.
Additionally, it gained a $1.5 billion provisional profit from acquiring Silicon Valley Bank UK Limited (SVB UK) in March.
HSBC UK bought SVB UK in March 2023 using their own resources. As a result, it gained SVB UK’s employees, assets, and liabilities.
When it acquired SVB UK, HSBC UK assessed the value of the assets and liabilities it purchased. It recorded this in a balance sheet on 13 March 2023. After assessing the value, there was a reduction of $0.2 billion in net assets.
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