First Republic Bank announced its financial report on Monday (24th), and Q1 deposit outflow exceeded 100 billion U.S. dollars.

(AFP)

[Financial Channel/Comprehensive Report] First Republic Bank (First Republic) said on Monday (24th) that deposits in the first quarter of this year fell by 40.8%, and asset outflows exceeded US$100 billion (about NT$3 trillion). Shares in First Republic tumbled 22 percent in after-hours trading after two other mid-sized banks collapsed, sparking customer fears of widespread bank failures.

According to comprehensive foreign media reports, after Silicon Valley Bank (SVB) and Signature Bank (Signature Bank) collapsed last month (March), people's confidence in regional banks in the United States was shaken, prompting customers to transfer billions of dollars to larger financial institutions. Institution, the First Republic Bank has thus come into focus.

First Republic Bank released its Q1 financial report on Monday (24th), detailing its precarious financial situation after large-scale withdrawals.

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As of the end of the first quarter, First Republic Bank's deposits fell by more than 40% to US$104.5 billion (about NT$3.19 trillion) from US$176.4 billion (about NT$5.3 trillion) on December 31 last year; Q1 profit fell 33% to US$269 million (approximately NT$8.22 billion) from US$401 million (approximately NT$12.26 billion) in the same period last year; revenue fell 13% to US$1.2 billion (approximately NT$36.7 billion).

The Q1 statistics also include US$30 billion (approximately NT$917.7 billion) injected by 11 large banks including JPMorgan Chase (JPMorgan). Excluding funding from major banks, the panic in March cost First Republic Bank about 102 billion Deposits of US dollars (approximately NT$3.1 trillion).

But the bank emphasized that deposits had started to stabilize in the week of March 27 and remained stable until April 21.

Shares of First Republic have fallen nearly 90 percent since early March, slumping 22 percent in after-hours trading following the earnings report.

Treasurer Neal Holland said in a statement that with the closure of several banks in March, First Republic experienced an unprecedented outflow of deposits, and the bank is now working hard to restructure its balance sheet and reduce expenses and short-term borrowing.

The bank also revealed that it will cut 20-25% of its workforce and cut senior salaries.

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