For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in SVB Financial ten years ago? It may not have been easy to hold on to SIVB for all that time, but if you did, how much would your investment be worth today?
SVB Financial's Business In-Depth
With that in mind, let's take a look at SVB Financial's main business drivers.
Headquartered in Santa Clara, CA, SVB Financial Group is a diversified financial services company. Incorporated in 1999, it operates through, among others, the Silicon Valley Bank, its primary subsidiary, providing a wide range of banking and financial products and services. SVB Financial has four operating segments
Global Commercial Bank: (constituting 87.5% of total average assets in 2020) This segment consists of Commercial Bank, which offers lending, deposit products, cash management services, global banking, and trade products and services, in addition to certain investment services. Other divisions include Private Equity Division, SVB Wine, SVB Analytics and Debt Fund Investments.
SVB Private Bank: (4.9%) This being the private banking division of Silicon Valley Bank, it offers a customized suite of private banking services, including mortgages, home equity lines of credit, restricted stock purchase loans, capital call lines of credit, and other secured and unsecured lending. It also fulfills private banking clients’ cash management needs through deposit account products and services.
SVB Capital: (0.5%) This being the venture capital investment division, it focuses on funds management, comprising funding of funds and direct venture funds (or co-investment funds). The segment manages venture capital funds, primarily on the behalf of third-party limited partner investors and the company.
SVB Leerink: (0.6%) Operating as a wholly-owned subsidiary of SVB Financial, it provides investment banking services across all subsectors of healthcare.
The company reports for these segments their non-controlling interest under the heading ‘Other items’ (6.5%) , which reflects adjustments required for the reconciliation of results in conformity with U.S GAAP.
In 2019, SVB Financial acquired Leerink Holdings LLC ("SVB Leerink"). In 2020, it acquired the debt investment business of WestRiver Group.
As of Dec 31, 2020, the company had total assets worth $115.5 billion, deposits of $102 billion, net loans of $45.2 billion and shareholders’ equity of $8.4 billion.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in SVB Financial ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in March 2011 would be worth $10,461.66, or a 946.17% gain, as of March 16, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 209.62% and gold's return of 19.05% over the same time frame.
Analysts are forecasting more upside for SIVB too.
Shares of SVB Financial have outperformed the industry over the past year. The company has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Growth in loans and deposits, and global expansion strategy will support the company’s financials, going forward. The deal to acquire Boston Private is expected to be earnings accretive, while the acquisition of the debt investment business of WestRiver Group will likely help SVB Financial further cement its foothold in the innovation economy. Although near-zero interest rates are likely to continue putting pressure on margins and elevated operating expenses are expected to hurt the bottom-line growth, a strong balance sheet position and efforts to improve non-interest income bode well for SVB Financial.
The stock has jumped 8.31% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2021; the consensus estimate has moved up as well.
Image: Bigstock
If You Invested $1000 in SVB Financial 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in SVB Financial ten years ago? It may not have been easy to hold on to SIVB for all that time, but if you did, how much would your investment be worth today?
SVB Financial's Business In-Depth
With that in mind, let's take a look at SVB Financial's main business drivers.
Headquartered in Santa Clara, CA, SVB Financial Group is a diversified financial services company. Incorporated in 1999, it operates through, among others, the Silicon Valley Bank, its primary subsidiary, providing a wide range of banking and financial products and services. SVB Financial has four operating segments
Global Commercial Bank: (constituting 87.5% of total average assets in 2020) This segment consists of Commercial Bank, which offers lending, deposit products, cash management services, global banking, and trade products and services, in addition to certain investment services. Other divisions include Private Equity Division, SVB Wine, SVB Analytics and Debt Fund Investments.
SVB Private Bank: (4.9%) This being the private banking division of Silicon Valley Bank, it offers a customized suite of private banking services, including mortgages, home equity lines of credit, restricted stock purchase loans, capital call lines of credit, and other secured and unsecured lending. It also fulfills private banking clients’ cash management needs through deposit account products and services.
SVB Capital: (0.5%) This being the venture capital investment division, it focuses on funds management, comprising funding of funds and direct venture funds (or co-investment funds). The segment manages venture capital funds, primarily on the behalf of third-party limited partner investors and the company.
SVB Leerink: (0.6%) Operating as a wholly-owned subsidiary of SVB Financial, it provides investment banking services across all subsectors of healthcare.
The company reports for these segments their non-controlling interest under the heading ‘Other items’ (6.5%) , which reflects adjustments required for the reconciliation of results in conformity with U.S GAAP.
In 2019, SVB Financial acquired Leerink Holdings LLC ("SVB Leerink"). In 2020, it acquired the debt investment business of WestRiver Group.
As of Dec 31, 2020, the company had total assets worth $115.5 billion, deposits of $102 billion, net loans of $45.2 billion and shareholders’ equity of $8.4 billion.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in SVB Financial ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in March 2011 would be worth $10,461.66, or a 946.17% gain, as of March 16, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 209.62% and gold's return of 19.05% over the same time frame.
Analysts are forecasting more upside for SIVB too.
Shares of SVB Financial have outperformed the industry over the past year. The company has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Growth in loans and deposits, and global expansion strategy will support the company’s financials, going forward. The deal to acquire Boston Private is expected to be earnings accretive, while the acquisition of the debt investment business of WestRiver Group will likely help SVB Financial further cement its foothold in the innovation economy. Although near-zero interest rates are likely to continue putting pressure on margins and elevated operating expenses are expected to hurt the bottom-line growth, a strong balance sheet position and efforts to improve non-interest income bode well for SVB Financial.
The stock has jumped 8.31% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2021; the consensus estimate has moved up as well.