Suitable for the Fastest-moving Part of the Economy
Despite the economic freeze from spring 2020 due to COVID 19, the bank has impressive results. The interest income from clients and loans was at 2.24% in 2020, which was a slight decrease by 3% from 2019. Non-interest income saw a 51% increase. The overall earnings per share were 5% for the whole of 2020.
SVB is more than the normal bank. The bank is a separate financial institution that caters to disruptive companies such as healthcare, employees, life science, and technology. Furthermore, 50% of all venture capital went to US businesses, while 68% helped the 2020 upcoming businesses. In essence, SVB bank is among the banks that managed to overcome the macroeconomic difficulties of 2020.
More than a Bank
The financial institution is grounded on unmovable technology. The emergence of COVID 19 made the world to be dependent on technology. 2021 continues from where 2020 left with more companies going public. This segment is an opportunity to provide financial services solutions.
SVB will see a financial increase as soon as interest rates increase over time. The institution gives out $45.2 billion in 2020 as a loan compared to $33.3 billion in 2019. However, the firm does not solely depend on the interest rate of the loans.SVB has invested in disruptive clients who continue to gain popularity in the market today.
These companies’ rise, such as technology, wills results in a balanced rise and growth of equity stake. SVB will experience double-digit growth in the coming years despite the harsh conditions brought by COVID. The company has purchased Boston Private Financial Holding for $ 0.9 billion despite other companies going bankrupt.
SVB financial group has proven to be the best place for investors. The institution has strong financial capabilities so that investors will not worry about financial waves.