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
sub>
VC fundraising
and investment
PE fundraising
and investment
Exit
activity
Capital
markets
Interest rates
Economic
environment
Competitive
landscape
Political
environment
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Proceeds from public market and M&A exits generate client liquidity
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A source of repayment for Investor Dependent loans
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• Level of interest rates and shape of yield curve directly impact NIM via lending and investment yields/spreads vs. funding costs
Client investment fees move with short-term rates
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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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Ability for companies to exit affects VC/PE fundraising and investment
Impacts investment banking revenue and value of warrants and investment securities
Performance and volatility of public, private and fixed income markets impact exit activity, market-driven revenues (FX, loan syndications,
investment banking revenue and commissions, warrant and investment gains and wealth management and trust fees) and VC/PE fundraising
and investment
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
Q1 2022 FINANCIAL HIGHLIGHTS
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