Silicon Valley Bank Results Presentation Deck
Focus Area: Reducing interest rate
sensitivity 10f1
of
What we're doing
Adding "Receive Fixed" interest rate swaps to convert variable-rate loans to fixed
Adapting to declining market rates (deposit beta)
Gradually extending maturity in our investment securities portfolio
Implementing loan rate floors to preserve income when rates fall
●
●
●
% Change from Base
-8%
-10%
-12%
-14%
-16%
-18%
-15.7%
-100 bps Interest Rate Shock (NII Sensitivity)*
12/31/17
14.0%
svb> Q2 2019 Corporate Overview and Financial Results
12-18 month rate sensitivity target: <10% with -100 bps shock
-13.7%
-12.9%
6/30/18
-13.3%
9/30/18
3/31/18
6/30/19
* These sensitivity estimates are reported on a pre-tax basis and are based on a static balance sheet and assumptions as of each period presented. For June 30, 2019 beta
assumptions were increased from 35 percent to 60 percent, reflective of our higher realized beta on deposit rates paid to our clients. Actual results may differ. Simulations used
to analyze interest-rate sensitivity may differ from actual results due to, among other things, differences in timing, frequency, and magnitude of changes in market rates; impact
of competition; fluctuating business conditions and impact of strategies taken by management to mitigate these risks.
NII sensitivity decreased in
Q2'19 due to higher deposit
beta assumptions
12/31/18
-14.4%
-12.4%
3/31/19
33View entire presentation