State Street tops week’s financial stock winners,SVB Financial leads the losers(NYSE:STT)
Q3 earnings performance helped determine which financial stocks made the biggest moves this week. In the week’s climbers, three posted better-then-expected earnings.
Many banks saw higher interest rates bolster their net interest income, but weak capital markets hurt their businesses that help bring debt and equity to the market or that engineer mergers and acquisitions. On the flip side, three banks that posted disappointing results or issued lackluster guidance were among the week’s biggest decliners.
State Street (NYSE:STT) topped the financial stocks that rose the most for the week ended Oct. 21, 2022. The trust bank saw its stock gain 13% after Q3 EPS beat the Street consensus and it announced a $1B stock buyback plan. It’s followed by:
Itau Unibano (NYSE:ITUB) stock increased 12% during the week as the Brazilian real strengthened 3% against the U.S. dollar;
Interactive Brokers Group (NASDAQ:IBKR) climbed 12% after the automated electronic broker posted better-than-expected Q3 earnings and revenue helped by higher NII;
Ares Capital Management (NYSE:ARES) rose 12% for the week; and
Insurance company RLI (NYSE:RLI) shares increased 11% after its Q3 non-GAAP EPS exceeded the consensus estimate.
For the decliners, SVB Financial (NASDAQ:SIVB), crypto-focused bank, saw its stock slump 28% for the week as it lowered expectations for 2022 NII;
ServisFirst Bancshares (NYSE:SFBS) sank 18% as increased charge-offs contributed to its Q3 earnings miss;
China-based fintech Lufax Holding (NYSE:LU) continued its year-long weakness, dropping 15% in the week. In Q3, the stock lost 59% of its value and has plunged 77% in the past year;
Regional bank M&T Bank (NYSE:MTB) slid 13% as Q3 net operating EPS missed the Street consensus as loan growth stalled;
Insurer Palomar Holdings (NASDAQ:PLMR) dipped 12% after estimating pretax catastrophe losses of $12.5M due to Hurricane Ian for Q3.
On Wednesday, CFRA downgraded regional bank Fifth Third (FITB) on slowing loan growth.