Back to top

Image: Bigstock

First Republic Bank (FRC) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Read MoreHide Full Article

For the quarter ended March 2023, First Republic Bank reported revenue of $1.21 billion, down 13.4% over the same period last year. EPS came in at $1.23, compared to $2.00 in the year-ago quarter.

The reported revenue represents a surprise of +6.76% over the Zacks Consensus Estimate of $1.13 billion. With the consensus EPS estimate being $0.72, the EPS surprise was +70.83%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how First Republic Bank performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Efficiency Ratio: 70.4% versus the seven-analyst average estimate of 61.83%.
  • Net Interest Margin: 1.77% compared to the 2.02% average estimate based on seven analysts.
  • Average Balance - Total interest-earning assets: $208.71 billion compared to the $204.77 billion average estimate based on four analysts.
  • Leverage Ratio: 8.25% versus 7.36% estimated by three analysts on average.
  • Total Noninterest Income: $286 million versus the seven-analyst average estimate of -$417.40 million.
  • Net Interest Income: $923 million versus the six-analyst average estimate of $955.34 million.
  • Investment advisory fees: $159 million compared to the $150.73 million average estimate based on five analysts.
  • Trust fees: $8 million versus $7.74 million estimated by five analysts on average.
  • Foreign exchange fee income: $24 million versus the five-analyst average estimate of $24.53 million.
  • Deposit fees: $8 million versus $6.88 million estimated by five analysts on average.
  • Insurance fees: $3 million compared to the $5.52 million average estimate based on four analysts.
  • Net interest income (FTE): $935 million versus the four-analyst average estimate of $997.70 million.
View all Key Company Metrics for First Republic Bank here>>>

Shares of First Republic Bank have returned +15.4% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Published in