Noninterest Income (Tables)

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Summary of Noninterest Income

Included below is a summary of noninterest income for the three and six months ended June 30, 2021 and 2020:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Noninterest income:
Gains on investment securities, net	$	305	$	35	$	472	$	81
Gains on equity warrant assets, net	122		27		344		40
Client investment fees	15		32		35		75
Foreign exchange fees	67		36		124		84
Credit card fees	31		21		59		50
Deposit service charges	28		21		53		45
Lending related fees	18		11		34		24
Letters of credit and standby letters of credit fees	13		11		26		23
Investment banking revenue	103		142		245		188
Commissions	17		17		41		33
Other	42		16		72		27
Total noninterest income	$	761	$	369	$	1,505	$	670

Components of Gains and Losses (Realized and Unrealized) on Investment Securities

A summary of gains and losses on investment securities for the three and six months ended June 30, 2021 and 2020 is as follows:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Gains on non-marketable and other equity securities, net	$	305	$	35	$	472	$	20
Gains on sales of AFS securities, net	—		—		—		61
Total gains on investment securities, net	$	305	$	35	$	472	$	81

Components of Gains on Equity Warrant Assets

A summary of net gains on equity warrant assets for the three and six months ended June 30, 2021 and 2020 is as follows:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Equity warrant assets:
Gains on exercises, net	$	78	$	9	$	251	$	33
Terminations	(1)		—		(1)		(1)
Changes in fair value, net	45		18		94		8
Total net gains on equity warrant assets	$	122	$	27	$	344	$	40

Components of Client Investment Fees

A summary of client investment fees by instrument type for the three and six months ended June 30, 2021 and 2020 is as follows:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Client investment fees by type:
Sweep money market fees	$	7	$	19	$	18	$	42
Asset management fees (1)	8		12		16		21
Repurchase agreement fees	—		1		1		12
Total client investment fees (2)	$	15	$	32	$	35	$	75

(1)Represents fees earned from investments in third-party money market mutual funds and fixed-income securities managed by SVB Asset Management.

(2)Represents fees earned on client investment funds that are maintained at third-party financial institutions and are not recorded on our balance sheet.

Components of Foreign Exchange Fees

A summary of foreign exchange fee income by instrument type for the three and six months ended June 30, 2021 and 2020 is as follows:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Foreign exchange fees by instrument type:
Spot contract commissions	$	60	$	33	$	115	$	74
Forward contract commissions	6		3		8		10
Option premium fees	1		—		1		—
Total foreign exchange fees	$	67	$	36	$	124	$	84

Components of Credit Card Fees

A summary of credit card fees by instrument type for the three and six months ended June 30, 2021 and 2020 is as follows:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Credit card fees by instrument type:
Card interchange fees, net	$	26	$	15	$	49	$	37
Merchant service fees	4		5		8		10
Card service fees	1		1		2		3
Total credit card fees	$	31	$	21	$	59	$	50

Components of Lending Related Fees

A summary of lending related fees by instrument type for the three and six months ended June 30, 2021 and 2020 is as follows:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Lending related fees by instrument type:
Unused commitment fees	$	15	$	8	$	28	$	17
Other	3		3		6		7
Total lending related fees	$	18	$	11	$	34	$	24

Schedule of Investment Banking Revenue

A summary of investment banking revenue by instrument type for the three and six months ended June 30, 2021 and 2020 is as follows:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Investment banking revenue:
Underwriting fees	$	84	$	131	$	209	$	162
Advisory fees	9		9		13		24
Private placements and other	10		2		23		2
Total investment banking revenue	$	103	$	142	$	245	$	188

Summary of Other Noninterest Income

A summary of other noninterest income by instrument type for the three and six months ended June 30, 2021 and 2020 is as follows:

	Three months ended June 30,				Six months ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Other noninterest income by instrument type:
Fund management fees	$	21	$	8	$	36	$	16
Net gains on revaluation of foreign currency instruments, net of foreign exchange forward contracts (1)	6		—		5		—
Other service revenue	15		8		31		11
Total other noninterest income	$	42	$	16	$	72	$	27

(1)Represents the net revaluation of client and internal foreign currency denominated financial instruments. We enter into foreign exchange forward contracts to economically reduce our foreign exchange exposure related to client and internal foreign currency denominated financial instruments.

Disaggregation of Revenue

The following tables present our revenues from contracts with customers disaggregated by revenue source and segment for the three and six months ended June 30, 2021 and 2020:

Three months ended June 30, 2021	Global Commercial Bank (2)		SVB Private   Bank		SVB Capital (2)		SVB Leerink (2)		Other Items		Total
(Dollars in millions)
Revenue from contracts with customers:
Client investment fees	$	14	$	1	$	—	$	—	$	—	$	15
Spot contract commissions	60		—		—		—		—		60
Card interchange fees, gross	48		—		—		—		1		49
Merchant service fees	4		—		—		—		—		4
Deposit service charges	27		—		—		—		1		28
Investment banking revenue	—		—		—		103		—		103
Commissions	—		—		—		17		—		17
Fund management fees	—		—		20		1		—		21
Performance fees	—		—		8		—		—		8
Correspondent bank rebates	1		—		—		—		—		1
Total revenue from contracts with customers	$	154	$	1	$	28	$	121	$	2	$	306
Revenues outside the scope of ASC 606 (1)	20		—		147		28		260		455
Total noninterest income	$	174	$	1	$	175	$	149	$	262	$	761

(1)Amounts are accounted for under separate guidance than ASC 606.

(2)Global Commercial Bank’s, SVB Capital’s and SVB Leerink's components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."

Three months ended June 30, 2020	Global Commercial Bank (2)		SVB Private   Bank		SVB Capital (2)		SVB Leerink (2)		Other Items		Total
(Dollars in millions)
Revenue from contracts with customers:
Client investment fees	$	31	$	1	$	—	$	—	$	—	$	32
Spot contract commissions	33		—		—		—		—		33
Card interchange fees, gross	26		—		—		—		—		26
Merchant service fees	5		—		—		—		—		5
Deposit service charges	21		—		—		—		—		21
Investment banking revenue	—		—		—		142		—		142
Commissions	—		—		—		17		—		17
Fund management fees	—		—		7		1		—		8
Correspondent bank rebates	1		—		—		—		—		1
Total revenue from contracts with customers	$	117	$	1	$	7	$	160	$	—	$	285
Revenues outside the scope of ASC 606 (1)	16		—		14		4		50		84
Total noninterest income	$	133	$	1	$	21	$	164	$	50	$	369

(1)Amounts are accounted for under separate guidance than ASC 606.

(2)Global Commercial Bank’s, SVB Capital’s and SVB Leerink's components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."

Six months ended June 30, 2021	Global Commercial Bank (2)		SVB Private   Bank		SVB Capital (2)		SVB Leerink (2)		Other Items		Total
(Dollars in millions)
Revenue from contracts with customers:
Client investment fees	$	33	$	2	$	—	$	—	$	—	$	35
Spot contract commissions	115		—		—		—		—		115
Card interchange fees, gross	89		—		—		—		1		90
Merchant service fees	8		—		—		—		—		8
Deposit service charges	52		—		—		—		1		53
Investment banking revenue	—		—		—		245		—		245
Commissions	—		—		—		41		—		41
Fund management fees	—		—		33		3		—		36
Performance fees	—		—		8		—		—		8
Correspondent bank rebates	2		—		—		—		—		2
Total revenue from contracts with customers	$	299	$	2	$	41	$	289	$	2	$	633
Revenues outside the scope of ASC 606 (1)	34		—		203		30		605		872
Total noninterest income	$	333	$	2	$	244	$	319	$	607	$	1,505

(1)Amounts are accounted for under separate guidance than ASC 606.

(2)Global Commercial Bank’s, SVB Capital’s and SVB Leerink's components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."

Six months ended June 30, 2020	Global Commercial Bank (2)		SVB Private   Bank		SVB Capital (2)		SVB Leerink (2)		Other Items		Total
(Dollars in millions)
Revenue from contracts with customers:
Client investment fees	$	74	$	1	$	—	$	—	$	—	$	75
Spot contract commissions	74		—		—		—		—		74
Card interchange fees, gross	62		—		—		—		1		63
Merchant service fees	10		—		—		—		—		10
Deposit service charges	45		—		—		—		—		45
Investment banking revenue	—		—		—		188		—		188
Commissions	—		—		—		33		—		33
Fund management fees	—		—		14		2		—		16
Correspondent bank rebates	2		—		—		—		—		2
Total revenue from contracts with customers	$	267	$	1	$	14	$	223	$	1	$	506
Revenues outside the scope of ASC 606 (1)	33		—		12		3		116		164
Total noninterest income	$	300	$	1	$	26	$	226	$	117	$	670

                        

(1)Amounts are accounted for under separate guidance than ASC 606.

(2)Global Commercial Bank’s, SVB Capital’s and SVB Leerink's components of noninterest income are shown net of noncontrolling interests. Noncontrolling interest is included within “Other Items."