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SVB Financial Group ROE %

: 11.72% (As of Mar. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. SVB Financial Group's annualized net income attributable to common stockholders for the quarter that ended in Mar. 2022 was $1,888 Mil. SVB Financial Group's average Total Stockholders Equity over the quarter that ended in Mar. 2022 was $16,108 Mil. Therefore, SVB Financial Group's annualized ROE % for the quarter that ended in Mar. 2022 was 11.72%.

The historical rank and industry rank for SVB Financial Group's ROE % or its related term are showing as below:

SIVB' s ROE % Range Over the Past 10 Years
Min: 10.3   Med: 11.99   Max: 20.95
Current: 12.56

During the past 13 years, SVB Financial Group's highest ROE % was 20.95%. The lowest was 10.30%. And the median was 11.99%.

SIVB's ROE % is ranked better than
70.25% of 1469 companies
in the Banks industry
Industry Median: 9.91 vs SIVB: 12.56

SVB Financial Group ROE % Historical Data

The historical data trend for SVB Financial Group's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

SVB Financial Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.54 20.95 19.63 16.21 14.47

SVB Financial Group Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.49 18.63 11.25 9.72 11.72

Competitive Comparison

For the Banks - Regional subindustry, SVB Financial Group's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

SVB Financial Group ROE % Distribution

For the Banks industry and Financial Services sector, SVB Financial Group's ROE % distribution charts can be found below:

* The bar in red indicates where SVB Financial Group's ROE % falls into.



SVB Financial Group ROE % Calculation

SVB Financial Group's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=1770/( (8220+16236)/ 2 )
=1770/12228
=14.47 %

SVB Financial Group's annualized ROE % for the quarter that ended in Mar. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Mar. 2022 )/( (Total Stockholders Equity (Q: Dec. 2021 )+Total Stockholders Equity (Q: Mar. 2022 ))/ count )
=1888/( (16236+15980)/ 2 )
=1888/16108
=11.72 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Mar. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


SVB Financial Group  (NAS:SIVB) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Mar. 2022 )
=Net Income/Total Stockholders Equity
=2060/16108
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2060 / 6396)*(6396 / 215916.5)*(215916.5 / 16108)
=Net Margin %*Asset Turnover*Equity Multiplier
=32.21 %*0.0296*13.4043
=ROA %*Equity Multiplier
=0.95 %*13.4043
=12.79 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Mar. 2022 )
=Net Income/Total Stockholders Equity
=2060/16108
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (2060 / 2860) * (2860 / 0) * (0 / 6396) * (6396 / 215916.5) * (215916.5 / 16108)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7203 * N/A * 0 % * 0.0296 * 13.4043
=12.79 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Mar. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Mar. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


SVB Financial Group ROE % Related Terms

Thank you for viewing the detailed overview of SVB Financial Group's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


SVB Financial Group Business Description

SVB Financial Group logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6022
Address
3003 Tasman Drive, Santa Clara, CA, USA, 95054-1191
SVB Financial Group provides loans and ancillary financial services to startups, private equity, and venture capital firms. The bank has four segments: Global Commercial Bank, SVB Private Bank, SVB Capital, and SVB securities. In addition to providing loans to venture-capital-backed startups, the company invests in private equity and venture capital funds of funds. The bank operates throughout the United States and maintains offices in Canada, the United Kingdom, Israel, China, India, Germany, Denmark, and Ireland.
Executives
China John officer: President of SVB Capital 3005 TASMAN DRIVE SANTA CLARA CA 95054
Draper Michelle officer: Chief Marketing Officer 177 WESTLAWN AVE DALY CITY CA 94015
Zuckert Michael S officer: General Counsel 365 HAWTHORNE AVENUE PALO ALTO CA 94301
Descheneaux Michael officer: President, Silicon Valley Bank 3003 TASMAN DRIVE SANTA CLARA CA 95054
Izurieta Laura officer: Chief Risk Officer 3005 TASMAN DRIVE SANTA CLARA CA 95054
Robinson John F director 3005 TASMAN DRIVE SANTA CLARA CA 95054
Cox Philip C officer: Chief Operations Officer ORCHARD HOUSE 40 BARRINGTON ROAD FOXTON CAMBRIDGE LONDON X0 CB22 6SL
Cadieux Marc C officer: Chief Credit Officer 508 LAUREL AVENUE MENLO PARK CA 94025
Becker Gregory W officer: President and CEO 3003 TASMAN DRIVE SANTA CLARA CA 95054
Edmonds-waters Christopher officer: Chief Human Resources Officer 3003 TASMAN DRIVE SANTA CLARA CA 95054
Beck Daniel J officer: Chief Financial Officer 3005 TASMAN DRIVE SANTA CLARA CA 95054
Davis Alison director UNISYS CORPORATION 801 LAKEVIEW DRIVE, SUITE 100 BLUE BELL PA 19422
Hon Karen officer: Chief Accounting Officer 3005 TASMAN DRIVE SANTA CLARA CA 95054
Friedman Joel P director C/O ACCENTURE LEGAL & COMMERICAL GROUP 23RD FL 161 N CLARK STREET CHICAGO IL 60601
Matthews Beverly Kay director C/O COHERENT, INC. 5100 PATRICK HENRY DRIVE SANTA CLARA CA 95054

SVB Financial Group Headlines

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