- Bridgette Randall
- 26 Apr, 2023
- Frankfurt
European markets traded down on economic worries despite improving corporate performance in the region.
Market indexes were on the defensive for the second week in a row on the worries that higher interest rates and slowing business activities may negatively impact corporate earnings.
The latest batch of earnings suggested positive performance from companies in France, Germany and the UK.
The forward looking German consumer sentiment index improved to -25.7 for May from the revised prior reading of 29.3 in April, GfK Institute's data showed Wednesday.
The consumer sentiment was the highest since April 2022, reflecting higher income expectations and sharply lower energy inflation.
Indexes & Yields
The DAX index decreased 0.6% to 15,774.25, the CAC-40 index dropped 0.9% to 7,466.99 and the FTSE 100 index declined 0.3% to 7,871.08.
The yield on 10-year German Bunds eased to 2.34%, French bonds to 2.92%, the UK gilts to 3.68% and Italian bonds to 4.23%.
The euro edged higher to $1.10, the British pound to $1.246 and the Swiss franc to 88.91 cents.
Brent crude rose 5 cents to $80.83 a barrel and the Dutch TTF natural gas fell €1.38 to €38.45 per MWh.
Stock Movers
Danone SA increased 1% to €61.04 after the French yogurt and food products maker lifted its 2023 sales outlook.
Dassault Systemes SE dropped 7.8% to €34.51 despite the French software company reporting quarterly results that matched market expectations.
Orange SA increased 1.9% to €11.66 after the French mobile telecom operator reported rising sales in the first quarter and the company reiterated its 2023 sales outlook.
Safran SA fell 2.2% to €138.90 despite the aerospace company reporting sales increase of 29.4% to €5.3 billion, mainly fueled by propulsion and aircraft Interiors activities.
As a part of its stock repurchase program for 9.4 million shares, the company has acquired 6.9 million shares and announced its plan to acquire €350 million of its shares between April 11 and June 9.
Standard Chartered Plc rose 1.4% to 629.0 pence after the UK-based bank reported pre-tax profit in the first quarter increased 23%.
Operating revenue in the first quarter rose 8% to $4.4 billion and pre-tax income rose to $1.7 billion from $1.4 billion and net interest margin increased 5 basis points to 1.63%.
- Barry Adams
- 25 Apr, 2023
- New York City
Market indexes accelerated losses as the session progressed and tech stocks and regional banks led the decliners.
First Republic Bank reported a sharp decline in deposits and despite the $30 billion deposits by some of the largest banks in support of the bank failed to stem market anxieties.
Regional banks were among the leading decliners in today's session on the worries that banks are not out of the woods yet and higher rates next week will only bring more pain to the industry.
Regional banks were under pressure after First Republic reported higher-than-expected deposit outflows and borrowings soared.
Pacific West Bancorp, East West Bancorp, Zions Bancorporation and U.S. Bancorp declined between 3% and 5%.
The sustained and rapid increase in interest rates are having negative impacts on government securities assets held by all banks, including regional, small and large.
Moreover, if banks suffer deposit outflows, then the unrealized losses in treasury securities have to be realized to shore up capital or banks have to seek alternative capital infusion, which is hard to come by when depositors are leaving.
More losses are on the way for many regional and large banks, if rates continue to rise at rapid pace, forcing more banks to seek capital infusion either from the Federal Reserve or from investors.
The Federal Reserve may have to provide additional liquidity to stressed regional banks. meaning more quantitative easing, while the central bank is conducting its quantitative tightening.
Moreover, the stress test conducted by the Federal Reserve over the last decade failed to consider how banks will be impacted in the event of rapid increase in interest rates and many regional banks including Silicon Valley Bank were exempted from the tests.
On the earnings front, investors were disappointed after UPS reported a decline in revenue and earnings and PepsiCo and Nestle reported weak quarterly results despite double digit price increases in many business segments.
The familiar pattern of higher sales, driven by price increases and weaker volumes or transactions was on display in the current batch of earnings.
Investors stayed on the sidelines as the broader market indexes and tech indexes accelerated declines above 1.5%.
New Home Sales Unexpectedly Soared In March
New home sales unexpectedly increased in March, the latest data from the Commerce Department showed Tuesday.
New home sales in March rose 9.6% from the previous month to $683,000 and February home sales were revised to 623,000, but 3.4% lower than in the month a year ago.
The median sales price of new homes sold in March was $449,800 and the average sales price was $562,400.
Sales soared 170.8% to 65,000 in the Northeast, 29.8% to 161,000 in the West and 6% to 71,000 in the Midwest but decreased 5.4% to 386,000 in the South.
Indexes & Yields
The S&P 500 index declined 1.3% to 4,084.97 and the Nasdaq Composite index dropped 1.6% to 11,847.87.
The yield on 2-year Treasury notes eased to 3.96%, 10-year Treasury notes fell to 3.34% and 30-year Treasury bonds dropped to 3.66%.
Crude oil decreased $1.90 to $76.86 a barrel and natural gas dropped 5 cents to $2.21 a thermal unit.
Stock Movers
First Republic Bank plunged 27.4% to $11.62 after the regional bank reported elevated deposit outflows.
said revenue in the first quarter declined 13.4% from a year ago to $1.2 billion and net interest margin fell 19.4% to $923 million.
Net income in the quarter declined 32.9% to $269 million from $401 million and diluted earnings per share fell to $1.23 from $2.0 a year ago.
On the balance sheet front, loans increased 22.6% from a year ago to $173.3 million, total deposits 35.5% to $104.5 billion and borrowings soared by $101.2 billion to $106.7 billion.
At the end of March, excluding the $30 billion of deposits made by the large U.S. banks, the bank's estimated uninsured deposits totaled $19.8 billion, or 27% of total deposits.
Insured deposits fell moderately during the quarter and have "remained stable" from March 31 through April 21.
PepsiCo Inc rose 2.4% to $189.99 after the food and beverage maker reported better-than-expected quarterly results.
The company said first quarter revenue increased 10.2% to $17.8 billion and net income of $1.3 billion.
The company lifted its full-year 2023 growth estimate of organic revenue to 8% from the previous estimate of 6% and core constant currency earnings per share to 9% from 8%.
United Parcel Service, Inc dropped 8.9% to $178.40 after the company reported weaker-than-expected quarterly results.
Ameriprise Financial, Inc decreased 5.8% to $294.47 despite the financial services provider reported better-than-expected earnings.
European markets lacked direction for the third day in a row and investors digested a slew of earnings announcements.
Banks were in focus after Spain-based Santander reported better-than-expected quarterly results but the Switzerland-based UBS reported a sharp decline in earnings.
Novartis, Associated British Foods, Whitbread and Daimler Truck were among the leading European companies reporting better-than-expected quarterly results.
Despite the improving quarterly results from European companies, benchmark indexes trended lower on the worries of future rate hikes and slowing economic activities.
UK Government Debt Expanded In March
The UK government's borrowing increased by £21.53 billion in March of 2023, higher than £16.3 billion in the month a year ago, the Office for National Statistics reported Tuesday.
The UK government's receipts rose 2.3% to £88.8 billion and spending advanced 19.9% to £110.3 billion, reflecting a surge in energy subsidies by £8.0 billion to households and businesses.
Over the twelve months to March 2023, borrowing increased to £139.2 billion or 5.5% of the GDP, £18.1 billion more than in the previous 12 month period and the fourth-highest borrowing since records began in 1946.
Indexes & Yields
The DAX index index increased 8.18 points to 15,872.13, the CAC-40 index declined 42.25 points to 7,53160 and the FTSE 100 index dropped 21.70 points to 7,891.13.
The yield on 10-year German Bunds eased to 2.44%, French bonds to 3.00%, the UK gilts to 3.73% and Italian bonds to 4.32%.
The euro weakened to $1.10, the British pound to $1.24 and the Swiss franc to 88.69 cents.
Brent crude oil decreased $2.03 to $80.68 a barrel and the Dutch TTF natural gas eased 33 cents to Є39.60 per MWh.
Europe Stock Movers
Alstom SA increased 1.1% to €21.92 after the French company won an €900 million order to supply trams to Quebec City, Canada.
UBS Group AG decreased 1.9% to CHF 17.85 after the Swiss bank reported a 52% fall in its first quarter earnings, reflecting higher provision for U.S. litigation and weaker sales.
ABB Ltd advanced 3.2% to CHF 32.69 after the Swiss engineering and construction company raised its full-year 2023 sales and earnings outlook.
Jungheinrich AG soared 10.4% to €33.66 after the German forklift maker reported higher first quarter operating earnings and the company also lifted its full-year outlook.
Daimler Truck Holding AG added 2.5% to €30.71 after the German heavy duty vehicle maker reported better-than-expected earnings.
Novartis AG rose 2.7% to CHF 91.92 after the Swiss drug maker lifted its full-year 2023 outlook.
Nestle SA advanced 1.1% to CHF 115.96 after the Swiss food products maker posted better-than-expected first quarter sales.
Associated British Foods Plc decreased 3.4% to 2,001.0 pence after the owner of Primark reported a 3% decline in first-half profit.
Ocado Group Plc advanced 1.4% to 512.80 pence after the online grocery company said it plans to stop operation at its Hatfield customer fulfillment center, impacting about 2,300 staff.
Whitbread Plc soared 5.6% to 3,302.66 pence after the parent of Premier Inn after the company said its annual income surpassed pre-pandemic levels.
- Scott Peters
- 25 Apr, 2023
- New York City
Ameriprise Financial, Inc declined 5.6% to $295.27 after the company released its latest quarterly results.
Revenue in the first quarter increased 3% to $3.7 billion from $3.6 billion and net income dropped 49% to $417 million from $825 million and diluted earnings per share to $3.79 from $7.10 a year ago.
Total assets under management declined 9% to $1.0 trillion from $1.1 trillion a year ago.
Cadence Design Systems Inc declined 5.1% to $202.09 after the semiconductor design software developer reported its quarterly results.
Revenue in the first quarter increased to $1.02 billion from $901 million and net income rose to $241.8 million from $235.3 million and diluted earnings per share increased to 89 cents from 85 cents a year ago.
For the second quarter, the company estimated total revenue in the range of $960 million to $980 million and operating margin in the range of 29% to 30% and diluted earnings per share in the range of $0.73 to $0.77.
First Republic Bank plunged 27.4% to $11.62 after the regional bank reported elevated deposit outflows.
said revenue in the first quarter declined 13.4% from a year ago to $1.2 billion and net interest margin fell 19.4% to $923 million.
Net income in the quarter declined 32.9% to $269 million from $401 million and diluted earnings per share fell to $1.23 from $2.0 a year ago.
On the balance sheet front, loans increased 22.6% from a year ago to $173.3 million, total deposits 35.5% to $104.5 billion and borrowings soared by $101.2 billion to $106.7 billion.
At the end of March, excluding the $30 billion of deposits made by the large U.S. banks, the bank's estimated uninsured deposits totaled $19.8 billion, or 27% of total deposits.
Insured deposits fell moderately during the quarter and have "remained stable" from March 31 through April 21.
PepsiCo Inc rose 2.4% to $189.99 after the food and beverage maker reported better-than-expected quarterly results.
The company said first quarter revenue increased 10.2% to $17.8 billion and net income of $1.3 billion.
The company lifted its full-year 2023 growth estimate of organic revenue to 8% from the previous estimate of 6% and core constant currency earnings per share to 9% from 8%.
UBS Group AG declined 3.4% to $19.84 after the Swiss bank reported a decline in earnings on higher provisions for litigation expenses.
Total revenue in the first quarter declined to $8.7 billion from $9.3 billion and net income dropped to $1.0 billion from $2.2 billion and diluted earnings per share fell to 32 cents from 61 cents a year ago.
The Swiss bank set aside $857 million for litigation related to legacy U.S. residential mortgage-backed securities.
United Parcel Service, Inc dropped 8.9% to $178.40 after the company reported weaker-than-expected quarterly results.
Ameriprise Financial, Inc decreased 5.8% to $294.47 despite the financial services provider reported better-than-expected earnings.
Consolidated revenue in the first quarter declined 6% to $22.9 billion and net income declined 28.8% of $1.9 billion from $2.6 billion and diluted earnings per share fell to $2.19 from $3.03 a year ago.
The parcel delivery company said the full-year 2023 revenue is likely to be near the low end of its previously released revenue and earnings range.
The company estimated full-year consolidated revenue of $97 billion and adjusted operating margin of 12.8% and capital expenditure of $5.3 billion.
The company estimated a dividend of $5.4 billion and set the share repurchase target of $3.0 billion.
- Brian Turner
- 25 Apr, 2023
- New York City
New home sales unexpectedly increased in March, the latest data from the Commerce Department showed Tuesday.
New home sales in March rose 9.6% from the previous month to $683,000 and February home sales were revised to 623,000, but 3.4% lower than in the month a year ago.
The median sales price of new homes sold in March was $449,800 and the average sales price was $562,400.
Sales soared 170.8% to 65,000 in the Northeast, 29.8% to 161,000 in the West and 6% to 71,000 in the Midwest but decreased 5.4% to 386,000 in the South.
- Barry Adams
- 25 Apr, 2023
- New York City
Stocks traded lower and investors reviewed the latest batch of earnings.
The familiar pattern of higher sales, driven by price increases, but weaker volumes or transactions was on display in the current batch of earnings.
Moreover, regional banks were under pressure after First Republic reported higher-than-expected deposit outflows and borrowings soared.
The sustained and rapid increase in interest rates are having negative impacts on securities assets of all banks, including regional, small and large.
Moreover, if banks suffer deposit outflows, then the unrealized losses in treasury securities have to be realized to shore up capital or seek alternative capital infusion.
More losses are on the way for many regional and large banks, if rates continue to rise at rapid pace, forcing more banks to seek capital infusion either from the Federal Reserve or from investors.
Investors turned cautious ahead of the earnings release from big tech companies later this week.
New Home Sales Unexpectedly Soared In March
New home sales unexpectedly increased in March, the latest data from the Commerce Department showed Tuesday.
New home sales in March rose 9.6% from the previous month to $683,000 and February home sales were revised to 623,000, but 3.4% lower than in the month a year ago.
The median sales price of new homes sold in March was $449,800 and the average sales price was $562,400.
Sales soared 170.8% to 65,000 in the Northeast, 29.8% to 161,000 in the West and 6% to 71,000 in the Midwest but decreased 5.4% to 386,000 in the South.
Indexes & Yields
The S&P 500 index declined 0.7% to 4,106.41 and the Nasdaq Composite index dropped 0.9% to 11,926.90.
The yield in 2-year Treasury notes eased to 4.01%, 10-year Treasury notes fell to 3.39% and 30-year Treasury bonds dropped to 3.64%.
Crude oil decreased $1.90 to $76.86 a barrel and natural gas dropped 5 cents to $2.21 a thermal unit.
Stock Movers
First Republic Bank plunged 27.4% to $11.62 after the regional bank reported elevated deposit outflows.
said revenue in the first quarter declined 13.4% from a year ago to $1.2 billion and net interest margin fell 19.4% to $923 million.
Net income in the quarter declined 32.9% to $269 million from $401 million and diluted earnings per share fell to $1.23 from $2.0 a year ago.
On the balance sheet front, loans increased 22.6% from a year ago to $173.3 million, total deposits 35.5% to $104.5 billion and borrowings soared by $101.2 billion to $106.7 billion.
At the end of March, excluding the $30 billion of deposits made by the large U.S. banks, the bank's estimated uninsured deposits totaled $19.8 billion, or 27% of total deposits.
Insured deposits fell moderately during the quarter and have "remained stable" from March 31 through April 21.
PepsiCo Inc rose 2.4% to $189.99 after the food and beverage maker reported better-than-expected quarterly results.
The company said first quarter revenue increased 10.2% to $17.8 billion and net income of $1.3 billion.
The company lifted its full-year 2023 growth estimate of organic revenue to 8% from the previous estimate of 6% and core constant currency earnings per share to 9% from 8%.
United Parcel Service, Inc dropped 8.9% to $178.40 after the company reported weaker-than-expected quarterly results.
Ameriprise Financial, Inc decreased 5.8% to $294.47 despite the financial services provider reported better-than-expected earnings.
- Bridgette Randall
- 25 Apr, 2023
- Frankfurt
Alstom SA increased 1.1% to €21.92 after the French company won an €900 million order to supply trams to Quebec City, Canada.
ABB Ltd advanced 3.2% to CHF 32.69 after the Swiss engineering and construction company raised its full-year 2023 sales and earnings outlook.
Revenue increased 13% to $7.8 billion and net income soared 72% to $1.03 billion from $604 million and diluted earnings per share rose to 56 cents from 31 cents a year ago.
Associated British Foods Plc decreased 3.4% to 2,001.0 pence after the owner of Primark reported a 3% decline in first-half profit.
Revenue in the first-half increased 21% to £9.56 billion and adjusted operating profit declined 3% to £684 million.
Basic earnings per share increased 11% to 67 pence and the company hiked dividend rose 3% to 14 pence per share.
Daimler Truck Holding AG added 2.5% to €30.71 after the German heavy duty vehicle maker reported better-than-expected earnings.
Jungheinrich AG soared 10.4% to €33.66 after the German forklift maker reported higher first quarter operating earnings and the company also lifted its full-year outlook.
The company revised higher its full-year earnings before interest and taxes to a new range between €400 million and €450 million from the previous range between €350 million and €400 million.
Group revenue is forecasted to fall between €5.1 billion and €5.5 billion, higher than the previous estimate between €4.9 billion and €5.3 billion.
The company estimated first quarter revenue of €1.29 billion compared to €1.06 billion and EBIT of €120 million from €78 million a year ago.
Novartis AG rose 2.7% to CHF 91.92 after the Swiss drug maker lifted its full-year 2023 outlook.
Revenue increased 3% to $12.95 billion and net income advanced 3% to $2.29 billion from $2.21 billion and diluted earnings per share rose to $1.09 from $1.0 a year ago.
Nestle SA advanced 1.1% to CHF 115.96 after the Swiss food products maker posted better-than-expected first quarter sales.
Revenue in the first quarter increased 5.6% to CHF 23.47 billion, reflecting price increases in all market regions.
Sales in North America rose 8.9% to CHF 6.3 billion and in Europe increased 5.4% CHF 4.9 billion.
Powdered and liquid beverages organic sales increased 7.2% to CHF 6.2 billion and pet care products organic sales soared 15.7% to CHF 4.7 billion.
Ocado Group Plc advanced 1.4% to 512.80 pence after the online grocery company said it plans to stop operation at its Hatfield customer fulfillment center, impacting about 2,300 staff.
UBS Group AG decreased 1.9% to CHF 17.85 after the Swiss bank reported a 52% fall in its first quarter earnings, reflecting higher provision for U.S. litigation and weaker sales.
Total revenue in the first quarter declined to $8.7 billion from $9.3 billion and net income dropped to $1.0 billion from $2.2 billion and diluted earnings per share fell to 32 cents from 61 cents a year ago.
The Swiss bank set aside $857 million for litigation related to legacy U.S. residential mortgage-backed securities.
Whitbread Plc soared 5.6% to 3,302.66 pence after the parent of Premier Inn after the company said its annual income surpassed pre-pandemic levels.
- Bridgette Randall
- 25 Apr, 2023
- Frankfurt
European markets lacked direction for the third day in a row and investors digested a slew of earnings announcements.
Banks were in focus after Spain-based Santander reported better-than-expected quarterly results but the Switzerland-based UBS reported a sharp decline in earnings.
Novartis, Associated British Foods, Whitbread and Daimler Truck were among the leading European companies reporting better-than-expected quarterly results.
Despite the improving quarterly results from European companies, benchmark indexes trended lower on the worries of future rate hikes and slowing economic activities.
UK Government Debt Expanded In March
The UK government's borrowing increased by £21.53 billion in March of 2023, higher than £16.3 billion in the month a year ago, the Office for National Statistics reported Tuesday.
The UK government's receipts rose 2.3% to £88.8 billion and spending advanced 19.9% to £110.3 billion, reflecting a surge in energy subsidies by £8.0 billion to households and businesses.
Over the twelve months to March 2023, borrowing increased to £139.2 billion or 5.5% of the GDP, £18.1 billion more than in the previous 12 month period and the fourth-highest borrowing since records began in 1946.
Indexes & Yields
The DAX index index decreased 0.1% to 15,845.31, the CAC-40 index declined 0.6% to 7,524.88 and the FTSE 100 index dropped 0.3% to 7,886.04.
The yield on 10-year German Bunds eased to 2.44%, French bonds to 3.00%, the UK gilts to 3.73% and Italian bonds to 4.32%.
The euro weakened to $1.10, the British pound to $1.24 and the Swiss franc to 88.69 cents.
Brent crude oil decreased 32 cents to $82.40 a barrel and the Dutch TTF natural gas eased 38 cents to Є39.55 per MWh.
Europe Stock Movers
Alstom SA increased 1.1% to €21.92 after the French company won an €900 million order to supply trams to Quebec City, Canada.
UBS Group AG decreased 1.9% to CHF 17.85 after the Swiss bank reported a 52% fall in its first quarter earnings, reflecting higher provision for U.S. litigation and weaker sales.
ABB Ltd advanced 3.2% to CHF 32.69 after the Swiss engineering and construction company raised its full-year 2023 sales and earnings outlook.
Jungheinrich AG soared 10.4% to €33.66 after the German forklift maker reported higher first quarter operating earnings and the company also lifted its full-year outlook.
Daimler Truck Holding AG added 2.5% to €30.71 after the German heavy duty vehicle maker reported better-than-expected earnings.
Novartis AG rose 2.7% to CHF 91.92 after the Swiss drug maker lifted its full-year 2023 outlook.
Nestle SA advanced 1.1% to CHF 115.96 after the Swiss food products maker posted better-than-expected first quarter sales.
Associated British Foods Plc decreased 3.4% to 2,001.0 pence after the owner of Primark reported a 3% decline in first-half profit.
Ocado Group Plc advanced 1.4% to 512.80 pence after the online grocery company said it plans to stop operation at its Hatfield customer fulfillment center, impacting about 2,300 staff.
Whitbread Plc soared 5.6% to 3,302.66 pence after the parent of Premier Inn after the company said its annual income surpassed pre-pandemic levels.
- Arjun Pandit
- 25 Apr, 2023
- Mumbai
Asian markets traded down following mixed global markets and investors awaited another batch of domestic earnings.
In overnight trading, benchmark indexes in the U.S. lacked direction after investors awaited earning from 300 companies this week.
Leading tech companies including Amazon, Microsoft, Meta Platforms and Alphabet are scheduled to report quarterly results this week.
Investors have been cautious after large U.S. banks and consumer products companies have met sharply lowered earnings expectations.
Moreover, most U.S. companies are reporting higher sales and earnings driven by significant price increases offset by volume declines, leading to lower gross margins.
Ongoing interest rate path worries also kept investors on the sidelines ahead of the Federal Reserve's rate decision next week.
In Europe, benchmark indexes hovered near record highs but worries of economic slowdown dominated market sentiment.
Despite the recent cooling of inflation in the Euro Area, financial markets are bracing for additional rate hikes, as the central banks look for ways to cool inflation but that also dampens economic activities and corporate earnings.
Asian Tech Stocks Drive Indexes Lower
In Asia, tech stocks led the decliners in Hong Kong, Shanghai and Seoul ahead of earnings from big U.S. tech companies.
The Hang Seng index dropped 1.6% to 19,635.85 and Hang Seng Tech index dropped 3.5%.
The Shanghai Composite Index declined 0.4% to 3,264.02.
Governor Ueda to Stick to Ultra-loose Rate Policy
The Nikkei 225 Index in Tokyo added 0.2% to 28,655.62 bucking the downward trend in Asian markets after the recently appointed governor of the Bank of Japan stressed the need of keeping the ultra-loose monetary policy intact for now.
Governor Kazuo Ueda's comments to parliament come a week before the central bank's monetary policy meeting next week, and the Bank of Japan is expected to keep interest rates near zero.
The yen drifted lower to 134.66 against the U.S. dollar.
In economic news, producer price inflation in Japan eased to 1.6% on an annual basis in March, lower than downwardly revised 1.7% in February, the Bank of Japan reported Tuesday.
On a monthly basis, producer price inflation increased 0.7% in March after rising 0.2% in February.
South Korea's GDP Expanded In First Quarter
South Korea's GDP expanded 0.8% from a year ago in the first quarter, the Bank of Korea reported Tuesday.
GDP expanded 0.3% from the previous quarter after contracting 0.4% in the final quarter of 2022. GDP in the first quarter rose after private consumption increased 0.5% compared to a decline of 0.6% in the previous quarter.
Markets in Australia and New Zealand are closed today to celebrate ANZAC Day.
- Scott Peters
- 24 Apr, 2023
- New York City
First Republic Bank said revenue in the first quarter declined 13.4% from a year ago to $1.2 billion and net interest margin fell 19.4% to $923 million.
Net income in the quarter declined 32.9% to $269 million from $401 million and diluted earnings per share fell to $1.23 from $2.0 a year ago.
On the balance sheet front, loans increased 22.6% from a year ago to $173.3 million, total deposits fell 35.5% to $104.5 billion and borrowings soared by $101.2 billion to $106.7 billion.
At the end of March, excluding the $30 billion of deposits made by the large U.S. banks, the bank's estimated uninsured deposits totaled $19.8 billion, or 27% of total deposits.
Insured deposits fell moderately during the quarter and have "remained stable" from March 31 through April 21.