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First Republic Bank Lost $100 Billion in Deposits During First Quarter Banking Panic
First Republic Bank revealed it lost over $100 billion during the first quarter after bank failures spurred a domino-effect of withdrawals from regional lenders and profits fell over 33%.
First Republic's profits dropped to $269 million from $401 million last year, and revenue dropped 13%, or down to $1.2 billion dollars, reports have noted. The loans the bank was pressured into taking out after the deposit run is also likely to keep future earnings lower.
Though withdrawals are said to have stabilized, First Republic shares have lost 90% of their value since the banking crisis in March, which the bank is reportedly trying to make up by reducing its staff and slashing executive paychecks. It's also being reported that the bank is considering potentially selling off the bank or parts of it.
Reports have noted that the company's shares fell 15% just after the release of its quarterly shortfalls.
During a Monday earnings calls, of which no questions were taken by bank execs, CEO Michael Roffler indicated that despite the setbacks, the bank has managed to maintain some 97% of its "client relationships."
First Republic drew massive attention after Silicon Valley Bank (SVB) and Signature Bank collapsed last month, jeopardizing the trust Americans have in US regional banks and leading many customers to move millions of dollars in deposits to bigger institutions.
[Source: Sputnik International, Washington, 25Apr23]
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