The outflow of deposits from the bank First Republic amounted to $ 72 billion – Kommersant
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Yesterday the American bank First Republic published its reporting for the first quarter, which reported a significant decrease in the volume of deposits: from $176 billion to $104 billion. At the same time, the bank’s revenue and profit decreased slightly: from $1.4 billion to $1.2 billion and from $386 million to $269 million, respectively. Nevertheless, after the publication of financial statements, First Republic quotes fell by 20%, because in mid-March this mortgage bank was among American banks experiencing serious financial problems.
Rumors about problems appeared on March 10, along with the news about bankruptcy Silicon Valley Bank. On the eve of the New York regulator closed due to systemic risks, another bank is Signature Bank, which specialized in lending to the cryptocurrency industry. The next could be First Republic, whose shares collapsed by 70% the next day. Quotes partially recovered only after he received support in the amount of $ 30 billion from the Fed and the six largest US banks.
Despite this, many First Republic customers decided to withdraw their deposits from there, which led to such a massive outflow in the first quarter. Analysts believe that the future of the bank is still under threat. “The future of the company is very uncertain,” said Jason Benowitz, a partner at CI Roosevelt, in an interview with Yahoo Finance. Growth in loans is likely to weigh on the company’s profitability in the coming quarters and beyond.”
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