A$.$ Trend OROA Analysis for SVB for $2021$ to $2022$

$$ Look at the trends for the Bank for $2021$ to $2022,$

$$ Compare the NIM, Burden$\%,$ and PLL$\%$ in $2022$ to $2021,$ & explain why the Bank$$s OROA changed in $2022.$

$$ Explain why the Bank$$s NIM changed in $2022($looking at IR$\%$ and IE$\%$ trends compared to $2021)$ & what type of funding gap this implies.

$$ Explain why the Bank$$s Burden$\%$ went down in $2022($looking at NIE$\%$ and NIR$\%$ trends compared to $2021).$

OROA $=$ NIM $-$ Burden$\%-$ PLL$\%-$ SecGain$/$Loss$\%$

B$.($OROA: Bank Comparison to the PG$1$ for $2022($only$)]$

$$ How does SVB$$s OROA compare to the PG$1$ in $2022,$ and what differences are there for SVB$$s NIM, Burden$\%,$ and PLL$\%$ compared to the PG$1?$

$$ Explain why SVB has a lower NIM in $2022$ than the PG$1($based on IR$\%$ and IE$\%$ differences$).$

$$ Explain why SVB has a lower Burden$\%$ than the PG$1$ in $2022($based on differences in NIE$\%$ and NIR$\%)$

$$ Summarize the strengths$/$weaknesses for SVB relative to the PG$1$ in $2022.$

C$.$ Dupont Trend Analysis: Calculate the Bank's AU and NPM$,$ EM$,$ and OROE & put these in a Table as below. Recall: $($EM $=1/$ Tier $1$ Capital Ratio as a fraction$)$; $[$OROE $=$ OROA x EM$]$; $[$AU $=$ IR$\%+$ NIR$\%]$; $[$NPM $=$ OROA $/($AU as a fraction$)].$ Dupont Trend Analysis for $2021$ to $2022$: Based on the ratios you did in the Table, do a Dupont Analysis, explaining why the OROE and OROA for the SVP changed in $2022$ compared to $2021($by analyzing differences in AU$,$ NPM$,$ and EM$).$

$2.$ Dupont Peer Comparison Analysis only for $2022$: Based on the ratios you did, using a Dupont Analysis, explain why the OROE for the SVB differs in $2022$ from the Peer average $($by analyzing differences in AU$,$ NPM$,$ and EM$).$

$\%$ of Average Total Assets Bank PG$1$ Bank PG$1$

Interest Income $($IR$\%)2\mathrm{.}662\mathrm{.}882\mathrm{.}032\mathrm{.}11$

Interest Expense $($IE$\%)0\mathrm{.}510\mathrm{.}540\mathrm{.}040\mathrm{.}13$

Net Interest Income $($NIM$)2\mathrm{.}152\mathrm{.}341\mathrm{.}991\mathrm{.}98$

Non$-$interest Income $0\mathrm{.}591\mathrm{.}140\mathrm{.}491\mathrm{.}20$

Noninterest Expense $1\mathrm{.}271\mathrm{.}981\mathrm{.}351\mathrm{.}92$

Burden $0\mathrm{.}680\mathrm{.}840\mathrm{.}860\mathrm{.}72$

Provision for Loan Losses $0\mathrm{.}190\mathrm{.}220\mathrm{.}07-0\mathrm{.}11$

Operating Income $($OROA$)1\mathrm{.}281\mathrm{.}281\mathrm{.}061\mathrm{.}37$