Silicon Valley Bank Results Presentation Deck
Key external variables to our forecast
Our performance is influenced by a variety of external variables, including but not limited to:
• Promote new company formation which helps support client acquisition
Source of client liquidity which impacts total client funds growth
A source of repayment for Investor Dependent loans
PA
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VC fundraising
and investment
PE fundraising
and investment
Exit
activity
Capital
markets
Interest rates
Economic
environment
Competitive
landscape
Political
environment
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• Performance and volatility of public, private and fixed income markets impact exit activity, VC/PE fundraising
and investment, and market-driven revenues (FX, loan syndications, investment banking revenue and commissions, warrant and investment
gains and wealth management and trust fees)
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Primary driver of capital call line demand which has been the largest source of loan growth over the past 8 years
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Proceeds from public market exits generate client liquidity
A source of repayment for Investor Dependent loans
Ability for companies to exit affects VC/PE fundraising and investment
Impacts investment banking revenue and value of warrants and investment securities
Level of interest rates and shape of yield curve directly impact NIM via lending and investment yields/spreads vs. funding costs
Client investment fee margin moves with short-term rates
Affect mortgage and securities prepayment speeds, impacting timing of premium amortization
Impact clients' preference for on- vs. off-balance sheet liquidity solutions and interest-bearing vs. noninterest-bearing deposits
Affect mortgage demand
Affects health of clients which determines credit quality
Level of business activity drives client liquidity and demand for our products and services
Inflation impacts costs (for us and clients) and influences fiscal and monetary policy decisions
Affects margins and client acquisition
Impacts compensation to attract and retain talent
Current administration and Congress will influence economic policy and stimulus, business and market sentiment, global trade relationships,
bank regulations and corporate taxes
• Geopolitical events can impact capital markets and economic environment
Q3 2022 FINANCIAL HIGHLIGHTS 23View entire presentation