SIVB - Why Shares of SVB Financial Group Are Falling Today
Shares of SVB Financial Group (NASDAQ: SIVB) , the parent company of Silicon Valley Bank, were nearly 16% lower as of noon today after the bank reported disappointing earnings results for the second quarter of the year.
SVB, which caters heavily to the start-up, tech, venture capital (VC), and private equity communities, reported diluted earnings per common share of $5.60 for the quarter on total revenue of $1.53 billion. Earnings fell woefully short of what analysts had been projecting for the quarter, missing estimates by $2.08.
The miss was driven by a rise in the provision for credit losses, which management attributed to deteriorating economic conditions. Furthermore, fee income of $362 million fell by about 30% from the first quarter.
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Why Shares of SVB Financial Group Are Falling Today