By Stephen Nakrosis
Shares of SVB Financial Group fell after hours on Thursday after the company released its second-quarter financial results and said the period was marked by “continued market volatility and changing economic conditions. “.
For the period, SVB, the parent company of Silicon Valley Bank, reported earnings per share of $5.60, down from $9.09 reported a year ago.
SVB said its provision for credit losses for the quarter was $196 million, compared to $11 million a year ago, “primarily due to a higher weighting of our downturn outlook scenario to reflect worsening economic conditions”.
Greg Becker, the company’s president and CEO, said “challenges in public markets are affecting cash flow to private companies, and that impact is being felt down the line in private company valuations, hiring and performance expectations”. He added that “Such adjustments are a normal and necessary part of the innovation cycle and, although they have caused us to change some of our short-term expectations, they have not changed our belief in the opportunity of long-term growth represented by the innovation economy.”
As of 4:56 p.m. ET, shares of the company had fallen 8.27% to trade at $400.10 per share. The stock ended the day’s regular session with a gain of 0.38%, closing at $436.17 per share.
Since the beginning of the year, the title is down nearly 36%.
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