UBS Group AG's acquisition of cross-town peer Credit Suisse Group AG was the standout transaction in an otherwise quiet first quarter of European bank M&A activity.

Just 17 bank transactions were announced during the first quarter, the lowest level since before 2018, S&P Global Market Intelligence data shows. The trend is similar both in the US banking market and across all sectors in Europe, as rising interest rates push up the cost of debt financing and high inflation weighs on investor confidence.

Activity would have been even more subdued were it not for UBS's purchase of its chief rival — a sale orchestrated by Swiss authorities following a surge in deposit withdrawals by Credit Suisse customers. UBS paid €3.03 billion for a business that had €537.7 billion of assets as of the end of 2022.

It is the largest deal in Swiss banking history, according to Market Intelligence data. The transaction is scheduled to close in June, but with concerns around integration, competition and job losses, many questions remain about what the combined entity will ultimately look like.

Also notable during the first quarter was HSBC Holdings PLC's acquisition of the UK arm of Silicon Valley Bank following the collapse of the latter's US parent. Much like the Credit Suisse deal, HSBC's acquisition came over the course of a single weekend and was driven by regulators eager to avoid contagion within the banking system.

The transaction gives HSBC greater access to entrepreneurs in the technology and life sciences sectors on very favorable financial terms: the bank paid a symbolic £1 but booked a $1.5 billion gain from the deal in its first-quarter earnings.

* Access the UBS-Credit Suisse deal profile page. * Access the HSBC-SVB deal profile page.