Bullish stock to watch: SVB Financial Group

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SVB Financial Group (NASDAQ: SIVB) stock rose over 1.3% on 24th April, 2020 (as of 11:29 am GMT-4; Source: Google finance) after the company posted decent results for the first quarter of FY 20. During the first quarter of 2020, the Average loans have risen by $1.7 billion to $33.7 billion compared to $32.0 billion for the fourth quarter of 2019. Loans (individually or in the aggregate) to any single client, equal to or greater than $20 million declined to $16.4 billion or 45.5 percent of total loans at March 31, 2020, as compared to $17.8 billion or 53.5 percent of total loans at December 31, 2019.

The company has reported the consolidated net income available to common stockholders for the first quarter of 2020 of $132.3 million, compared to $262.9 million for the fourth quarter of 2019 and $288.7 million for the first quarter of 2019. The company posted the net interest income, on a fully taxable equivalent basis, of $527.5 million for the first quarter of 2020, compared to $536.8 million for the fourth quarter of 2019. Net interest margin, on a fully taxable equivalent basis, has contracted to 3.12 percent for the first quarter of 2020, compared to 3.26 percent for the fourth quarter of 2019. The decline in the net interest margin by 14 basis points was mainly on the back of a 14 basis point decline attributable to the rate environment and a six basis point fall from lower loan fees. These declines were partially offset by a two basis point increase from balance sheet growth and a four basis point contribution from the interest rate swap cash flow hedges and effective loan floors.

SIVB in the first quarter of FY 20 has reported the adjusted earnings per share of $2.55, while reported the adjusted revenue of $826.07 million in the first quarter of FY 20.

Additionally, the company has declared a quarterly cash dividend of $13.125 per share (representing $0.328125 per depositary share) on the Series A Preferred Stock. This dividend will be payable on May 15, 2020 to holders of record at the close of business on May 4, 2020. During the first quarter of 2020, the company has repurchased and retired 244,223 shares of our common stock totaling $60.0 million. The company has made no repurchases subsequent to February 27, 2020.

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