Shares of financial services provider SVB Financial (NASDAQ:SIVB) are tanking today after the company’s third-quarter showing. The top line increased by ~2.2% over the year-ago period to $1.56 billion but fell short of estimates by $80 million.
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EPS at $7.21, on the other hand, outperformed expectations by $0.12. Average loans increased by 2.6% sequentially to $71.1 billion during this period. The operating efficiency ratio came in at 57.3.
The cratering share price is due to concerns about climbing interest rates and recession worries. Looking ahead, for full-year 2022, SVB now expects average deposit balances to grow by the mid-twenties as compared to the earlier expectation of growth in the high twenties.
Net interest income is expected to clock growth in the low forties versus the earlier outlook for growth in the mid-forties.
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