New York, Apr 26 (EFE).- The shares of First Republic Bank, one of the banks most affected by the recent crisis, continued to sink this Wednesday in electronic operations prior to the opening of Wall Street, after yesterday they fell almost 50%, after disclosing their accounts, which show the huge loss of deposits they suffered and their difficult financial situation.
An hour before the opening of the Stock Market, its shares fell another 15% and some analysts expressed their fear that it could infect the sector.
The entity, which in March had to be rescued by other banks with a joint injection of 30,000 million dollars, presented its quarterly results at the close of the stock market on Monday and immediately began to plummet.
Yesterday, at the close of the New York Stock Exchange, the shares had lost 49.37%, to settle at $8.10.
At the beginning of March, before the First Republic was infected by the panic unleashed after the collapse of Silicon Valley Bank (SVB), those same shares were trading above $120.
The bank, which traditionally serves mostly wealthy clients, lost nearly $100 billion in deposits during the March banking crisis.
Counting the 30,000 million contributed by other banks to stabilize the situation, the First Republic had at the end of the first quarter 104,500 million dollars in deposits, 40% less than before.
The First Republic also suffered a sharp drop in its turnover and profits and, although the bank assures that the situation is stabilized, the outlook for the future is complex due to the large loans it had to request to face the exit of deposits.
Given that many of the loans it had previously given to clients have long terms and low interest rates, analysts warn of the difficult situation facing the entity.
To try to save its business, First Republic announced a savings plan on Monday that will include a 20-25% cut in its workforce, cuts in executive compensation, less office space and a reduction in non-profit projects. essential.
