Deposits decreased by 41 percent in the first quarter
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First Republic Bank announced its balance sheet for the first quarter of 2023.
Accordingly, the Bank’s revenues decreased by 13.4 percent in the January-March period compared to the same period of the previous year, and decreased to 1.2 billion dollars. First Republic Bank had revenue of $1.4 billion in the first quarter last year.
First Republic Bank’s net profit also fell 32.9 percent to $269 million during the same period. The net profit of the bank was 401 million dollars in the January-March period last year.
As of the end of March, the bank’s deposits decreased by 35.5 percent on an annual basis to 104.5 billion dollars. First Republic’s deposits decreased by 40.8 percent compared to the end of last year. The bank’s deposits were $162.1 billion as of March 31, 2022, and $176.4 billion as of December 31, 2022.
In the statement made by First Republic Bank, it was stated that deposit activity stabilized from the week of March 27 and remained stable until April 21.
In the statement, it was stated that the total deposits decreased by 1.7 percent compared to the end of March as of April 21, and amounted to 102.7 billion dollars, pointing out that this decrease reflects the seasonal tax payments of the customers.
Recalling that they experienced “unprecedented” deposit outflows after bank failures in March, Signature Bank Chief Financial Officer (CFO) Neal Holland said, “We acted quickly and leveraged our high-quality loan and securities portfolios to provide additional liquidity. Restructuring our balance sheet, reducing our expenses. and we are working to reduce our short-term borrowings.” used the phrases.
First Republic Bank also faced financial difficulties after the bankruptcy of Silicon Valley Bank (SVB) and Signature Bank in the US last month.
In mid-March, 11 major banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, announced that they would transfer a total of $30 billion in deposits to support First Republic Bank, which was experiencing financial difficulties.
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