In the first three months of the year, First Republic Bank customers withdrew more than $100bn (£80bn) from their accounts due to concerns about the health of the global banking system.
The US bank reports that its deposits have decreased by more than 40 percent since the end of December.
The Swiss banking giant Credit Suisse disclosed yesterday the magnitude of the bank run that prompted its government-backed rescue last month.
A series of bank failures has sparked concerns of a sector-wide crisis.
Neal Holland, the chief financial officer of First Republic, stated that the closure of several institutions in March resulted in unprecedented outflows of deposits.
“We are working to restructure our balance sheet as well as reduce our expenses and short-term borrowings,” he added.
The First Republic also announced its intention to reduce expenses by laying off 20 to 25 percent of its workforce in the future months.
The bank’s stock fell by more than 20 percent in extended trading in New York following the announcement.
Last month, a consortium of large U.S. banks poured $30 billion into the First Republic, which was in danger of failing.
US regulators called the decision “most welcome,” while JP Morgan and Citigroup expressed “confidence” in it.
Silicon Valley Bank, the sixteenth-largest US bank, folded earlier this month. This event signaled the emergence of banking sector problems in the United States.
This was followed by the failure of New York’s Signature Bank two days later.
To prevent further attacks on bank deposits, the government guaranteed deposits over typical limits.
Monday, the European banking giant Credit Suisse reported that 61.2 billion Swiss francs ($69 billion; £55.2 billion) had departed the institution during the first three months of the year.
The company’s final financial figures before its forced sale to UBS were announced.
Central banks like the Federal Reserve and Bank of England have raised interest rates sharply to fight inflation.
The actions have diminished the value of banks’ sizable bond portfolios acquired when interest rates were lower.
This contributed to the failure of Silicon Valley Bank and raises concerns about the situation at other companies.
