Big US financial groups Charles Schwab, State Street and M&T reported deposit outflows from their banking arms as investors continued to pull money out in search of higher returns.

Schwab said on Monday that deposits fell 11 per cent in the first quarter and 30 per cent year on year. The San Francisco-based broker, whose shares have plunged nearly 40 per cent since January, also paused share buybacks but reported better-than-expected adjusted earnings per share of $0.93, up 21 per cent year on year.

Custody bank State Street’s shares opened down more than 15 per cent as quarterly profits missed expectations and fees were hit by subdued markets and reduced assets under management in its investment arm. Total deposits fell 5 per cent in the first quarter to $224bn at the end of March.