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SVB Financial (SVB) in Santa Clara, Calif., reported a 60% increase in quarterly profit after investment securities it holds rose more than ninefold in value.
October 24 -
SVB Financial Group (SIVB) in Santa Clara, Calif., benefited from higher lending income and investment gains last quarter.
July 26 -
The chief credit officer of SVB Financial Group (SIVB) in Santa Clara, Calif., is moving to China.
April 25 -
A unit of SVB Financial Group (SIVB) in Santa Clara, Calif., plans to raise $300 million for a venture capital fund.
March 19 -
Silicon Valley Bank has launched a mobile banking app for U.S. commercial clients.
April 1
California-based SVB Financial Group (SIVB)
Earnings of $1.27 per share crushed the estimates of analysts polled by Bloomberg by more than 26 cents for the $26.4 billion-asset company from Santa Clara, Calif. An increase in average loan balance of 6.2% or $600 million from the third quarter of 2013, and an increase in average total client funds of 7.2%, to $47.7 billion, helped to fuel the earnings growth.
SVB, the parent of Silicon Valley Bank, primarily largely caters to technology and venture capital firms in Silicon Valley and other technology hotbeds. The company has 28 offices in the U.S.as well as international operations in China, India, Israel and the United Kingdom.
"Our clients continued to outperform the broader economy, resulting in significant venture capital and warrant related gains for us," SVB president and chief executive Greg Becker said in a release Thursday. "Together, these factors helped drive robust earnings for the quarter and the year."
SVBs shares were up nearly 5% late Friday, to $115.24.
Net interest income grew to $187.4 million for the fourth quarter of 2013, a 16.4% increase from the same quarter a year prior. Net interest income was aided by the increase in average loan balances and a growth in income from available-for-sale securities. The net interest margin was up seven basis points to 3.20% compared year over year.
Its noninterest income skyrocketed 88.4% thanks to gains from non-marketable and other securities. Noninterest expense increased by 18.1% to $168.9 million.
SVBs provision for loan losses was $28.7 million for the fourth quarter of 2013, up from $15 million from the same quarter in 2012, driven by $10.5 million in net chargeoffs.