SVB Financial stock climbs as first quarter earnings beat on strong credit quality (NASDAQ:SIVB)

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SVB Financial (NASDAQ: SIVB) stocks almost climb 5% in the trade after office hours Next Thursday stronger than expected Q1 resultsas “credit quality was impeccable and client activity remained robust,” said Greg Becker, President and CEO.

First quarter EPS of $7.92 topped analysts’ average estimate of $5.58 and compared to $6.22 in the fourth quarter of 2021, although down from $10.03 in the first quarter of Last year.

First-quarter net interest income of $1.08 billion increased from $939 million in the fourth quarter of 2021 and $660 million a year ago. The net interest margin was 2.13% in the first quarter, compared to 1.91% in the previous quarter, but down from 2.29% in the first quarter of 2021.

Noninterest revenue of $517 million in the first quarter, compared to $561 million in the fourth quarter of 2021 and $744 million in the first quarter of 2021.

Average loans of $67.07 billion in the first quarter increased from $62.57 billion in the fourth quarter of 2021 and $46.28 billion in the first quarter a year ago. Average deposits were $190.72 billion in Q1 compared to $183.1 billion in Q4 2021 and $110.61 billion in Q1 2021.

Average customer investment funds of $206.14 billion decreased slightly from $207.6 billion in the prior quarter, but up from $151.6 billion in the first quarter of 2021.

Provision for credit losses as a percentage of total loans of 0.61% in Q1 compared to 0.64% in Q4 2021 and 0.82% in Q1 2021.

The operating efficiency ratio in the first quarter was 54.60% compared to 60.13% in the fourth quarter of last year and 45.31% in the quarter of the previous year.

In mid-March, Jefferies expected SVB Financial to see rapid growth in core net interest income.

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