Saturday, June 3, 2023

US regional bank shares jump on report of increase in deposits of Western Alliance

Shares of mid-tier U.S. banks rose on Wednesday, fueled by growing investor confidence that the worst of the banking crisis may be over, after Western Alliance Bancorp reported strong deposit growth.

Deposits at Western Alliance grew by more than $2 billion in the three months to May 12, the unit said on Tuesday, suggesting customers remain confident in their financial health despite the bankruptcies of three other lenders. Medium scale in recent months: Silicon Valley Bank, Signature Bank and First Republic Bank.

“The first thing is not the second,” said Arthur Hogan of B. Riley Wealth in Boston, which was one of the things investors were cautious about.

Hogan said, “Then Western Alliance, one of the hardest-hit banks, came out with a statement that showed an increase in deposits. And as these banks start to show that deposits have stabilized, this whole instills more confidence in the industry.”

Shares of Western Alliance, which have fallen 40% so far this year, were up 13% at $35.90, erasing losses over the past two weeks.

Other regional lenders were also trading higher: PacWest Bancorp, whose shares have lost nearly 77% of their value so far this year, was up 23%, Comerica Inc was up 10%, Zions Bancorp up 11% and KeyCorp up 7.8%. % couple.

The KBW regional banking index was up 7%, jumping to its highest level since May 1.

Nation World News Desk
Nation World News Desk
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