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From Moody’s downgraded outlook to oil prices, here are the top ten updates on the SVB collapse

  1. SVB Financial Group’s parent company, SVB Financial, reported a quarterly loss of over $1 billion due to the pandemic-induced economic slowdown.
  2. The company’s stock price has plummeted by more than 50% since the start of the year.
  3. SVB Financial Group announced that it will be cutting its dividend and suspending its share repurchase program in order to conserve capital.
  4. Moody’s downgraded the company’s credit rating to Ba2, citing increasing economic uncertainty and declining oil prices.
  5. SVB Financial has also taken steps to reduce its workforce and consolidate its operations in order to reduce costs.
  6. The company’s loan portfolio has taken a hit in the wake of the pandemic, with non-performing loans rising to 4.5% of total loans at the end of the first quarter.
  7. SVB Financial has also been hit hard by the oil price crash, with its energy-related loan portfolio increasing by $1.2 billion in the first quarter of 2020.
  8. SVB Financial Group’s liquidity position has also been weakened, with its cash and cash equivalents falling from $8.1 billion at the end of 2019 to $7.2 billion at the end of the first quarter of 2020.
  9. SVB Financial Group has been in discussions with regulators in order to ensure its liquidity position is sufficient to withstand the economic downturn.
  10. The company has also been exploring potential merger and acquisition opportunities in order to diversify its revenue streams and mitigate the impact of the economic downturn.