XLF - Regional bank stocks surge as deposit growth cheered: Weekly financials roundup

2023-07-22 10:19:00 ET

This past week's gainers among financial stocks were led by four regional banks and one consumer-lending company. Meanwhile, one credit card firm, two crypto-exposed companies, one Chinese personal finance platform and one U.K. insurer topped the worst performers.

Overall, financial stocks ended the earnings-packed week firmly higher, with the Financial Select Sector SPDR ETF ( NYSEARCA: XLF ) climbing 3% , outpacing the S&P 500's 0.7% rise .

Alabama-based ServisFirst Bancshares ( NYSE: SFBS ) was the biggest winner among financial stocks (with market cap over $2B) for the week ended July 21, surging 35.2% , after logging 23% growth in deposits on an annualized basis;

Western Alliance Bancorporation ( NYSE: WAL ) jumped 24.3% as deposits improved during the second quarter;

Fellow regional lender Zions Bancorporation ( NASDAQ: ZION ), which also saw a solid rebound in customer deposits, drove up 17.6% ;

Upstart Holdings ( NASDAQ: UPST ), which offers a loan platform for banks, climbed 16.4% ; and

Pinnacle Financial Partners ( NASDAQ: PNFP ), up 16.4% , rose after posting stronger-than-expected top and bottom lines .

The biggest loser was credit card company Discover Financial Services ( NYSE: DFS ), dropping 11.3% , after delivering Q2 earnings and revenue that fell short of Street expectations;

Bitcoin ( BTC-USD ) miner Marathon Digital Holdings ( NASDAQ: MARA ) retreated 6.6% as bitcoin continued to trade sideways;

Lufax Holding ( NYSE: LU ), a Chinese financial services platform, dipped 4.4% ;

Crypto exchange Coinbase Global ( NASDAQ: COIN ), amid its ongoing legal troubles , slipped 4.3% ; and

Rounding out the five biggest decliners of the week is Prudential ( NYSE: PUK ), a U.K.-based life and health insurer, edging down 4% .

More on the financials sector this week:

• Rithm Capital buys $1.4B of Marcus loans from Goldman Sachs
• Truist cuts guidance after Q2 earnings miss on lower NII, higher funding costs
• SL Green Realty stock dips as Q2 earnings slide with lower occupancy
• Bill banning stock trading by Congress, White House officials introduced in Senate

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