SIVB - SVB Financial stock drops after lowering Q2 earnings miss downbeat 2022 guidance

SVB Financial ( NASDAQ: SIVB ) shares slid as much as 8.3% in Thursday afterhours trading after it brought down its 2022 guidance in loan and deposit growth as well as net interest income following worse than expected second-quarter results .

The regional bank is anticipating growth in average loan balances to be in the high twenties this year, compared with mid-thirties growth in the prior view.

It also sees full-year average deposit balances growing in high twenties vs. low forties growth in the previous guidance.

Net interest income is anticipated to be mid-forties growth in 2022, down from low fifties in the previous outlook.

Net interest margin, though, is expected to be 2.15% to 2.25% in 2022, compared with 2.10% to 2.20% in the prior forecast.

Turning to the second quarter, adjusted EPS of $5.60 fell short of the average analyst estimate of $7.62 and dipped from $7.92 in Q1 and $9.09 in the year-ago period.

Q2 net interest income of $1.17B increased from $1.1B in Q1 and $728M in Q2 a year ago.

Noninterest income of $362M in Q2 vs. $517M in Q1 and 761M in Q2 of last year.

Provision for credit losses mounted to $196M at June 30, compared with 11M at March 31 and $35M at June 30, 2021.

Average loans came in at $69.3B in Q2 compared with $67.1B in Q1 and $49.8B in Q2 2021. Average deposits of $192.1B in Q2 vs. $190.72B in Q1 and $133.8B in Q2 2021.

Tangible book value of $199.27 per common share at June 30 fell slightly from $201.07 at March 31 and rose from $172.44 in the year-ago quarter.

"Challenges in the public markets are affecting liquidity flows to private companies, and that impact is being felt down the line in private company valuations, hiring and performance expectations," said CEO and President Greg Becker.

Earlier, SVB Financial Q2 revenue of $1.53B missed by $130M .

For further details see: