SVB Financial Group (SIVB) in Santa Clara, Calif., benefited from higher lending income and investment gains last quarter.

The $22.2 billion-asset company reported Thursday a second-quarter profit of $48.6 million, a 2% increase from a year earlier. Earnings per share were $1.06, 14 cents higher than the average estimate of analysts polled by Bloomberg.

Net interest income rose 12%, to $170.1 million, as SVB's net interest margin widened by 27 basis points, to 3.40%. SVB attributed the improved margin in part to a rise in proportion of variable-rate loans issued. Provision for loan losses rose 24%, to $18.6 million, and net chargeoffs ticked up 4%, to $11.2 million.

Noninterest income increased by 42%, to $98.2 million, as gains on investment securities rose 57%, to $40.6 million. Foreign-exchange and deposit fees also rose.

Noninterest expense increased 6%, to $143.3 million, led by higher compensation costs.

SVB, the parent of Silicon Valley Bank, has been expanding internationally in recent years; it has established a joint venture in China, and it opened its first London branch last year.

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