The market is worried about the continued banking crisis

Xinhua News Agency, New York, April 25th: First Republic Bank of the United States‘ performance in the first quarter has deteriorated significantly, triggering market concerns that the US banking crisis may continue. Affected by this, First Republic Bank’s stock price plummeted nearly 50% on the 25th.

First Republic Bank’s financial report released on the 24th showed that the bank’s operating income, net profit, deposit balance and other indicators in the first quarter fell sharply from the previous quarter. Due to poor performance, the bank’s stock price closed at US$8.1 per share on the 25th, a drop of 49.38% compared with the closing price of the previous trading day.

Market concerns about the possible continuation of the banking crisis led to the decline of the entire banking sector on the 25th and dragged down the three major stock indexes in New York.

According to US media reports, First Republic Bank is seeking to sell assets such as residential mortgages and securities worth US$50 billion to US$100 billion to reduce the mismatch between assets and liabilities. As of the end of March this year, First Republic had total assets of $232.9 billion, an increase of $20.3 billion from the end of December 2022.

When Silicon Valley Bank and Signature Bank closed down one after another in March, First Republic Bank once faced the risk of a run, and the market paid close attention to whether the bank would become the next American bank to fall.