SVB Financial Group in Santa Clara, Calif., reported substantial increase in quarterly profit that reflected higher revenue.
The $43.4 billion-asset company reported Thursday that its net income rose 36% from a year earlier, to $111.1 million. At $2.12 a share, the results beat the consensus of analysts’ estimates by 41 cents.
Net interest income rose 13.5% from a year earlier to $289.4 million. Net loans increased nearly 25% to $18.9 billion.
The loan-loss provision fell 43% to $19 million. Nonperforming assets fell 8% to $106.3 million.
Since SVB is a major player in lending to technology companies, some observers were awaiting the results to see if there were signs of weakness following news earlier this week that Opus Bank would charge off $38.8 million related to eight loans, with two of those loans — but 57% of the chargeoffs — coming from its technology banking division. In its earnings release, SVB noted that its $15.9 million of new nonaccrual loans included $10.4 million tied to clients in its software and internet loan portfolio.
Noninterest income increased by 33% to $144 million, largely due to gains on investment securities and derivative instruments, though credit card fees also rose.
Noninterest expenses rose by 20% to $221.8 million, primarily because of higher compensation costs.
