Key takeaways
- First Republic lost $70 billion worth of deposits in Q1, down 40%
- Share prices plunged 20% but have recovered 12% in pre-market trading
- Confidence in regional banks is shaken after the earnings report, with the Fed interest rate decision just days away
First Republic Bank lost over $70 billion worth of deposits in Q1, marking a substantial 40.8% loss, its earning report has revealed. It would never be easy for the beleaguered regional bank after it was swept up in the aftermath of the Silicon Valley Bank (SVB) collapse, but investors had hoped for a miracle.
Unfortunately, it hasn’t happened. Virtually all key metrics were down and First Republic will struggle to be profitable in Q2 as well, analysts predict. It’s shaken confidence in the embattled regional banking sector and raised concerns that we haven’t seen the last of bank runs and collapses.
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