IBOS member Silicon Valley Bank (SVB) Financial Group has announced its financial results for Q1 2018, ended 31 March, 2018, with a net income of $195 million compared to $117.2 million for Q4 2017.
Net interest margin, on a fully taxable equivalent basis, was 3.38% for the Q1 2018, compared to 3.20% for the Q4 2017. SVB’s net interest margin increased primarily as a result of the impact of rising interest rates as well as a shift in the mix of our interest-earning assets to loans from our fixed income securities.
For the Q1 2018, approximately 91.5%, or $21.9 billion, of SVB’s average gross loans were variablerate loans that adjust at prescribed measurement dates. Of SVB’s variable-rate loans, approximately 65.0% are tied to prime-lending rates and 35.0% are tied to LIBOR.
Below are SVB’s financial highlights in Q1 2018 (compared to Q4 2017):
- Average loan balances of $23.8 billion, an increase of $1.4 billion (or 6.1%)
- Period-end loan balances of $24.6 billion, an increase of $1.5 billion (or 6.4%)
- Average fixed income investment securities of $24.0 billion, an increase of $0.2 billion (or 0.8%)
- Period-end fixed income investment securities of $24.6 billion, an increase of $0.8 billion (or 3.6%)
- Average total client funds (on-balance sheet deposits and off-balance sheet client investment funds) increased $8.1 billion (or 7.9%) to $110.5 billion
- Period-end total client funds increased $9.1 billion (or 8.7%) to $113.7 billion
- Net interest income (fully taxable equivalent basis) of $421.2 million, an increase of $25.9 million (or 6.5%)
- Noninterest income of $155.5 million, an increase of $3.3 million (or 2.1%). Non-GAAP core fee income increased $8.6 million (or 8.1%) to $115.0 million (See non-GAAP reconciliation under the section “Use of Non-GAAP Financial Measures.”)
Read the full press release via SVB here.