SVB Financial Plunges On Tepid Outlook, Q2 Earnings Miss

Shares of SVB Financial Group (SIVB) are down more than 15% Friday morning after the company’s earnings missed analysts view.

The company also significantly increased provision for credit losses, citing uncertain economic conditions.

Besides, SVB Financial expects lesser net interest income for the full year than its earlier guidance.

Net income in the second quarter declined to $333 million or $5.60 per share from $502 million or $9.09 per share in the same quarter a year ago.

The average estimate of analysts polled by Thomson-Reuters was $7.68 per share.

Net interest income in the quarter increased to $1.167 billion from $728 billion last year.

Provision for credit losses was $196 million compared with $35 million last year.

Looking forward, the company expects net interest income to grow in the mid forties for the full year, down from low fifties growth provided earlier.

SIVB is at $367.26 currently. It has traded in the range of $364.78-$763.22 in the past 52 weeks.