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Forget the San Francisco bank's pedestrian bottom line this quarter the real things to focus on are its revenue growth and the reasons behind it.
October 14 -
The best-performing banks are those that continue to invest in growth, rather than those that fixate on containing expenses, writes Capital Performance Group's Kevin Halsey.
May 26 -
James Herbert's bank is thriving by delivering top-notch service and maintaining strict underwriting standards at a time when many banks are struggling to increase revenues and undercutting each other to win loan business.
December 21
Profits at First Republic Bank fell slightly in the third quarter as increased salary and benefits costs and a decline in noninterest income could not offset strong growth in loans, deposits and wealth management assets.
Overall, though, it was a strong quarter for the San Francisco bank as core revenue climbed nearly 15% year over year, to $459 million.
The $55.4 billion-asset company said Thursday that it earned $134.8 million in the quarter that ended June 30, down about 1% from the same period last year. Most of the decline could be attributed to a roughly 16% increase in noninterest expenses and a sharply lower gain on sales of loans and investment securities.
Still, while earnings per share fell 5%, to 82 cents, they beat the average estimates of analysts by a penny. Loans outstanding, excluding those held for sale, climbed nearly 16% year over year, to $42.4 billion, while wealth management revenues increased 13.4%, to $50.7 million. Meanwhile, deposits surged nearly 25%, to $44.3 billion and wealth management assets climbed nearly 15%, to $58.8 billion.
First Republic’s shares were trading at $62.47 early Thursday and are up roughly 23% for the year.
