Silicon Valley Bank Results Presentation Deck
Increased business activity drives core fees higher despite low rate impact on client
investment fees; Expect 2021 core fees to be consistent with 2020
Q4'20 activity
• Record FX fees (+16% qoq) driven primarily by hedging and PE deal activity
Lending fees +45% on fees earned from unused lines of credit (due to
strong client liquidity)
• New clients, deepening penetration and higher utilization drove Card fees +12%
• Deposit fees +5% on strong deposit growth and transaction volumes
Client investment fees -22% despite surge in balances as fee margin, which
adjusts with short-term rates, decreased by 3 bps to 7 bps
Standby letter of credit fees -6% from slowdown in commercial real estate
●
●
●
CORE FEE INCOME*
$ Millions
Core Fee Income
as % of Total
Revenue
FX Fees
Credit Card Fees
Client Investment
Fees
Deposit Service
Charges
Lending Related
Fees
LOC Fees
svb>
20%
168.1 168.5
42.4
32.3
45.2
23.7
13.1
11.4
20%
Q4'19
47.5 132.5
28.3
43.5
24.6
15%
13.1
11.5
36.3
21.3
31.9
20.5
11.1
11.4
14% 13%
146.3
43.9
22.8
31.9
22.0
13.5
12.2
155.9
51.1
25.4
25.0
23.2
19.7
11.5
Q1'20 Q2'20 Q3'20 Q4'20
• Core fees to be impacted by:
+
+
+
FY'21 outlook key drivers
Recovering business activity
Gradual improvement, though watching pace of vaccine
distributions, COVID-19 spread and shutdowns
New client growth
Continued strong client acquisition
Deepening client engagement
From investments in new products and client experience
Lower client investment fees
Despite strong growth in balances as fee margin bottoms at mid
high single digits in Q1'21 due to nearzero rates
FX seasonality
Typically slower in first half of the year
RECENT ENHANCEMENTS
FX
Simplified user
experience
Trading and platform
automation
80% target straight
through processing
* Non-GAAP financial measure. See "Use of non-GAAP Financial Measures" in our Q4 2020 Earnings Release and
our non-GAAP reconciliations at the end of this presentation.
8
Cards
Automated
underwriting
Rewards and rebates
Expense management
and controls
Full online experience
Liquidity
Custom solutions
40+ liquidity
management
products
Q4 2020 Financial Highlights
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