First Republic Bank FRC Stock Forecast 2023
First Republic Bank FRC Stock Forecast 2023: Read about the First Republic Price Target as well as the latest News from First Republic Bank
Latest FRC Stock Price
Article Coverage: Performance of First Republic Bank Stock, FRC Stock Price Prediction Using Technical Indicators, FRC Stock Forecast Today, Latest FRC Stock Video, First Republic Bank: Analysts’ Price Targets, FRC Stock Forecast Latest News, and Updates, First Republic Bank Q1 Results, First Republic Bank: Fundamentals, First Republic Bank: Macros
The stock is highly volatile and meant for speculative trading only.
First Republic Bank Latest News
- Fitch has issued a cautionary statement, indicating the possibility of downgrading multiple banks, among them JPMorgan Chase, which acquired First Republic Bank. Following this alert from Fitch, the stocks of these banks have exhibited a downward trend.
- Michael Burry who is betting $1.6 billion on a stock market crash has sold all the shares in a number of regional banks. He sold 150,000 shares of First Republic Bank (FRCB) as well as holdings in Huntington Bank PacWest (PACW) and Western Alliance (WAL).
FRC Stock Forecast Today
|1. Market's Wisdom||N/A|
|1a. Market Data||N/A|
|1b. Technical Recommendation||Neutral|
|2. Crowd's Wisdom||Neutral|
|2a. Social Media Buzz||Higher|
|2b. Social Media Sentiment||Lower|
JPMorgan Chase’s acquisition of First Republic
On May 1, 2023, JPMorgan Chase announced the acquisition of a substantial portion of First Republic Bank’s assets and deposits from the FDIC. They are assuming all deposits, insured and uninsured, totaling approximately $92 billion, including $30 billion of large bank deposits. The acquisition also includes around $173 billion of loans and approximately $30 billion of securities.
The transaction is expected to yield a one-time, post-tax gain of about $2.6 billion for JPMorgan Chase, with an estimated $2.0 billion of post-tax restructuring costs over the next 18 months. Despite these costs, the bank maintains strong capitalization, with a CET1 ratio consistent with its 1Q 2024 target of 13.5% and healthy liquidity buffers.
The acquired businesses of First Republic Bank will be under the oversight of JPMorgan Chase’s Consumer and Community Banking Co-CEOs, Marianne Lake and Jennifer Piepszak, who express their commitment to treating the new employees with respect, care, and transparency.
First Republic Bank Earnings
Last 4 Quarters Earnings Summary
|(USD)||Mar 2023||Dec 2022||Sep 2022||Jun 2022|
|Net profit margin||22.55%||27.43%||29.93%||29.30%|
|Net change in cash||–||-1.25B||-705M||-1.52B|
Q1 of 2023 Earnings
First Republic Bank posted its quarterly report for the first quarter of 2023. This was the first quarterly report since the collapse of Silicon Valley Banks. The collapse of SVB affected First Republic Bank the most. The bank was also on the verge of collapse. However, the bank was able to obtain liquidity access from the Federal Reserve Bank and JPMorgan Chase & Co. More than $70 billion in unused funds was infused into the bank for operations. Additionally, the bank received uninsured deposits aggregating $30 billion from 11 banks in the country.
Here is the summary of the first quarter of 2023:
- First Republic Bank posted a net total loss of $72 billion in deposits during the first quarter. This was around a 41% decline in the deposits. The reason behind this was the collapse of Silicon Valley Bank which triggered panic across the banking system and caused depositors to withdraw their deposits.
- The First Republic Bank posted its first-quarter earnings of $269 million which is down by 30% from the fourth quarter and 33% from the year-earlier period.
- The bank’s net interest income dropped 21% from the fourth quarter and 19% from the first quarter of 2022.
- First Republic Bank (FRC) came out with quarterly earnings of $1.23 per share beating Zacks Consensus Estimate of $0.72 per share. This quarterly report represents an earnings surprise of 70.83%.
- First Republic Bank posted revenues of $1.21 billion for the quarter that ended March 2023, surpassing the Zacks Consensus Estimate by 6.76%.
First Republic Bank FRC Stock Forecast 2023: Analysts’ Price Targets
FRC Bank Target Price for the next 12 Months is $16.3
|FRC Bank Target Price, 12 Months||$16.3|
Performance of First Republic Bank Stock
- Last 30 days: -41.5%
- Last 6 months: -99.8%
- Last 12 Months: -99.8%
First Republic Bank FRC Stock Forecast 2023: Macros
The US commercial banking market may be divided into segments using the offered goods and services. Depositary Services, Other Non-Interest Income Generating Products, Lending Services, such as Commercial and Industrial Loans, Residential, Agricultural, and Real Estate Loans, Individual Loans Excluding Credit Cards and Credit Card Loans, and Other Services are the categories under which lending services fall. Investors’ pessimistic prognosis for the US banking industry suggests that they anticipate slower long-term growth rates than in the past.
The industry is presently trading at a PE ratio of 9.9x, which is lower than its three-year average PE of 12.2x. The United States was the first to adopt blockchain technology in the banking and finance industries. Also, the country’s utilization of open banking is progressively expanding. Open Banking can change the future competitive environment. Banks that invest in their skills will be in a good position to keep their position as strong brands that interact with consumers.
Businesses in the financial and banking markets are facing some significant economic challenges as 2023 begins. Banks must lead transformation initiatives that enable them to compete for a share of “new-age banking,” conducted as digital-first, embedded finance, marketplace banking, and BaaS, among others, to keep up with change and ensure that their organizations remain relevant, undisturbed, and ahead of competitors.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.