Silicon Valley Bank Results Presentation Deck
Significant revenue upside if rates rise
Estimated increase in annualized
pre-tax NII for each 25 bp
increase in rates
NII INCREASE
ASSUMING
STATIC
BALANCE SHEET
ADDITIONAL
NII BENEFIT
ASSUMING
FY'22 GROWTH
OUTLOOK
TOTAL
NII BENEFIT
+~$90-110M¹
+~$10-20M²
+~$100-130M
svb >
Estimated increase in annualized
pre-tax client investment fees
and fee margin³:
FIRST 25 BP
INCREASE IN
SHORT-TERM RATES
SUBSEQUENT 25 BP
INCREASE IN
SHORT-TERM RATES
+~$205-235M
+10-11 bps
Increased earnings power provides opportunity to invest
further in our long-term growth strategy, talent attraction
and retention (see page 14) - expect to reinvest a portion
of the in-year revenue upside in 2022 from rising rates
+~$20-50M
+1-2 bps
1. Equivalent to +10.9% NII sensitivity for the expected 12month impact of a +100 bp rate shock on net interest income. Managements
sensitivity analysis is based on a static balance sheet, in size and composition, as of December 31, 2021 and is subject to assuptions,
including a 60% beta on interest-bearing deposits and an instantaneous and sustained parallel shift in rates. Actual results maydiffer.
See our upcoming 2021 Form 10-K report for more information.
2. Assumes growth in average loans and average deposits consistent with our FY'22 outlook (see page 11) and that securities payowns
(-$3-4B/quarter) and excess balance sheet growth is reinvested in securities until $810B average Fed cash target is met.
3. Based on Q4'21 off-balance sheet client investment fund average balances.
Q4 2021 Financial Highlights
21View entire presentation