SVB Financial Group (SIVB) has reported a 13.66 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $99.47 million, or $1.89 a share in the quarter, compared with $87.51 million, or $1.68 a share for the same period last year. Revenue during the quarter grew 14.40 percent to $403.03 million from $352.31 million in the previous year period. Net interest income for the quarter rose 10.23 percent over the prior year period to $296.60 million. Non-interest income for the quarter fell 0.88 percent over the last year period to $113.50 million.
SVB Financial Group has made provision of $7.07 million for loan losses during the quarter, down 77.37 percent from $31.26 million in the same period last year.
Net interest margin improved 19 basis points to 2.73 percent in the quarter from 2.54 percent in the last year period. Efficiency ratio for the quarter deteriorated to 59.63 percent from 54.39 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"The fourth quarter capped a solid year marked by continued strong fundamentals. We saw healthy growth in loans, total client funds and core fee income; as well as sound credit quality, despite the VC market recalibration in the first half of 2016," said Greg Becker, president and chief executive officer of SVB Financial Group. "Our positive expectations for 2017 have improved in light of recent short-term rate increases and we believe there could be potential upside if rates continue to rise. While there is still uncertainty in the global markets, and very early-stage companies are still feeling the effects of the recalibration, we believe SVB's position as the bank to the world's most dynamic companies, entrepreneurs and investors remains a distinct competitive advantage."
Assets, liabilities remain almost stable
Total assets were almost flat at $44,683.66 million as on Dec. 31, 2016, when compared with the last year period. On the other hand, total liabilities stood at $40,906.62 million as on Dec. 31, 2016, down 1.08 percent from $41,353.47 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $19,674.58 million as on Dec. 31, 2016, up 19.06 percent compared with $16,524.46 million on Dec. 31, 2015. Deposits stood at $38,979.87 million as on Dec. 31, 2016, down 0.42 percent compared with $39,142.78 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $31,975.46 million or 82.03 percent of total deposits on Dec. 31, 2016, compared with $30,867.50 million or 78.86 percent of total deposits on Dec. 31, 2015.
Investments stood at $21,669.96 million as on Dec. 31, 2016, down 16.16 percent or $4,176.70 million from year-ago. Shareholders equity stood at $3,777.04 million as on Dec. 31, 2016, up 13.31 percent or $443.81 million from year-ago.
Return on average assets moved up 8 basis points to 0.88 percent in the quarter from 0.80 percent in the last year period. At the same time, return on average equity increased 3 basis points to 10.77 percent in the quarter from 10.74 percent in the last year period.
Nonperforming assets moved down 3.55 percent or $4.38 million to $119.01 million on Dec. 31, 2016 from $123.39 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.27 percent in the quarter, down from 0.28 percent in the last year period.
Tier-1 leverage ratio stood at 8.34 percent for the quarter, up from 7.63 percent for the previous year quarter. Average equity to average assets ratio was 8.18 percent for the quarter, up from 7.41 percent for the previous year quarter. Book value per share was $69.71 for the quarter, up 12.49 percent or $7.74 compared to $61.97 for the same period last year.
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