SVB Financial (SIVB) to Hire 80 Bankers, Expand in U.K.
SVB Financial Group’s SIVB primary banking subsidiary, Silicon Valley Bank is on expansion mode and is in the process of hiring nearly 80 bankers in U.K. Further, the company is converting its London-based branch in to a full subsidiary. The news was reported by Reuters.
Erin Platts, president of the U.K. branch of Silicon Valley Bank said, “We are starting to see pockets of activity already, the influx of U.S. capital into UK tech had slowed since March but the phones are now ringing again and investors see it as a time to potentially start being opportunistic.”
As Britain is facing the worst possible economic recession owing to the coronavirus pandemic, many financial firms are laying off employees including NatWest Group NWG, HSBC Holdings HSBC and Virgin Money. However, Silicon Valley Bank is taking the opposite route.
The company has already hired 30 employees and intends to increase its headcount to 330 by 2020-end from 250 at the beginning of the year. It will also hire a chairman and three directors to manage the operation.
Silicon Valley Bank plans to take advantage of the backlog of investment that built up since the pandemic-induced lockdowns across Europe in March. Platts further noted that “Historic levels of fundraising by private equity means there is a lot of capital on the sidelines, much of it time-bound, and they need to invest.”
SVB Financial largely generates revenues from the United States. Less than 10% of the company’s revenues come from foreign clients. With the above-mentioned development, its top line is likely to be further diversified geographically.
Shares of this Zacks Rank #3 (Hold) have rallied 25% over the past year against the industry’s decline of 7.5%.
One bank worth a look is RBB Bancorp RBB, which currently carries a Zacks Rank #2 (Buy). The company’s 2020 earnings estimates have moved 3% upward over the past 30 days. The stock has gained 5.8% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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