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 a 57% increase to $1.8 billion over the same period.

!function(e,i,n,s){var t="InfogramEmbeds",d=e

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here