Ahead of collapse, SVB’s interest expense climbed 1,700%
Lending income failed to keep pace with higher deposit costs as Fed reshaped rates environment
Silicon Valley Bank struggled to ride a high interest rate environment in the months leading up to its collapse, with deposit costs outpacing fattening interest revenues.
Interest expenses rose at an average rate of 164% between Q2 and Q4 2022, for a cumulative 1,698% increase over the year, to $719 million. Growth in interest income was slug-like in comparison, averaging 16% every quarter, for
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