HSBC Innovation Banking has distributed £333m in dividends to its parent company, following a surge in profitability after its first full year as a subsidiary of HSBC Group.
The bank, previously the 海角视频 subsidiary of Silicon Valley Bank until its downfall in 2023, paid HSBC a special dividend of £198m in 2024, followed by an additional interim dividend of £135m in April 2025, according to accounts filed at Companies House, as reported by .
The total cash payments of £333m demonstrate that HSBC is reaping the benefits of the once-struggling bank it saved from near-collapse two years ago for a mere £1.
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HSBC Innovation Banking reported a pre-tax profit of £220m in 2024, a five-fold increase on the previous year. However, the rise in profitability was somewhat tempered after accounting for one-off costs associated with the lender's takeover in 2023.
Net interest income increased by 7.7 per cent to £405m over the year, benefiting from the higher interest rate environment, while the bank's total assets rose by 7.9 per cent to £9.6bn.
However, the firm, which specialises in lending to start-ups and rapidly expanding tech businesses, warned of limited funding and lower valuations in the sector as it increased its expected credit losses provision by a significant 62 per cent to £76m.
HSBC division hails signs of improvement
"While macroeconomic uncertainty, geopolitical tensions and sector-specific issues like constrained funding and valuation pressures continued to influence the market, the innovation economy has shown signs of recovery," stated the bank's board.
"A gradual easing of inflationary pressures and stabilising interest rates have provided a more favourable backdrop, helping restore investor confidence and activity levels across VC and PE markets.
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"Stricter diligence in critical sectors, including life sciences, climate tech and artificial intelligence, has introduced greater scrutiny but also new investment opportunities."
"Public markets and mergers and acquisition activity remained slow, which limited return distributions to investors, although this did show signs of improvement towards the end of the year."
In a demonstration of the firm's ongoing expansion, HSBC Innovation Banking brought on board over 100 additional staff during the year, pushing its total workforce count to 747.
The lender appointed Citigroup veteran Emily Turner as its new chief executive in June, following the departure of former boss Erin Platts who was headhunted by investment firm Octopus Ventures.