new York The US regional bank First Republic announced on Monday evening that it intends to lay off 20 to 25 percent of its workforce in the current quarter. In addition, customers had recently withdrawn massive amounts of money for fear of a collapse. Deposits fell 41 percent to $104 billion in the first quarter, the bank said on Monday.
The collapse of rivals Silicon Valley Bank and Signature Bank has shaken customers’ confidence in US regional banks, who prefer to park their funds with the big institutions. Thanks to higher interest rates at the start of the year, First Republic Bank’s net profit fell less than feared and was $1.23 per share. The institute’s stocks still fell more than 21 percent in after-hours US trading – in the course of trading they were still clearly in the plus.