Silicon Valley Bank Results Presentation Deck slide image

Silicon Valley Bank Results Presentation Deck

Strong balance sheet growth driving NII with NIM headwinds (2 of 2) TOTAL FUNDING SOURCES Billions Non-interest- Bearing Deposits Interest-bearing Deposits Borrowings Other $46.8 0.02% 2017 $53.3 0.06% 2018 $55.0 23% Total Cost of $57.9 Deposits 36% Q1 2019 Q2 2019 * Outlook as of 7/25/19 and does not reflect change in Fed Funds rate on 7/31/19 svb> Q2 2019 Corporate Overview and Financial Results Strong deposit growth but higher mix of interest-bearing deposits drove increase in cost of deposits ā— Majority of deposit growth driven by new and deepening relationships with Tech and Life Science clients Expect limited growth in average non- interest bearing balances for rest of 2019 and potential impact from PE fund distributions in Q3/Q4 Total cost of deposits remains low at 36 bps Net interest income outlook* lowered to low teens and net interest margin outlook to 3.60%-3.70% as deposit mix and lower market rates not fully offset by stronger balance sheet growth Flexibility to adjust deposit rates down in a lower rate environment 11
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