First Republic Bank Lost $102 Billion in Customer Deposits
First Republic Bank, the most imperiled U.S. lender after last month’s banking crisis, on Monday disclosed the grisly details of just how troubled its business has become — and not much else.
In the bank’s highly anticipated first update to investors since entering a free-fall over the past month and a half, its leaders said little. In a conference call to discuss its first quarter results with Wall Street analysts, the bank’s executives offered just 10 minutes of prepared remarks and declined to take questions, leaving investors and the public with few answers about how it would steer out of its malaise.
One thing is certain: The bank, which caters to a well-heeled clientele on the coasts, is hanging on by a thread. During the first quarter, it lost a staggering $102 billion in customer deposits — well over half of the $176 billion it held at the end of last year — not including a temporary $30 billion lifeline it received from the nation’s biggest banks last month.
First Republic reported a quarterly profit of $269 million, down one-third from a year earlier. Its shares fell 15 percent in extended trading following the release of its results.
Source: The New York Times
