The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how diversified banks stocks fared in Q4, starting with U.S. Bancorp (NYSE: USB).

At their core, diversified banks take in deposits and engage in various forms of lending, which means revenue is generated through interest rate spreads (difference between loan and deposit rates) and fees. Other revenue comes from adjacent services such as wealth management, card and account fees, and products such as annuities. These institutions benefit from rising interest rates that improve NIMs (net interest margins), digital transformation reducing operational costs, and expanding wealth management services as populations age. However, they face headwinds including fintech competition disrupting traditional models (how disruptive is crypto?), stringent regulatory requirements increasing compliance costs, and cybersecurity threats requiring substantial technology investments. Economic downturns also pose risks through potential loan defaults and compressed margins during accommodative monetary policy periods.

The 7 diversified banks stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10% since the latest earnings results.

U.S. Bancorp (NYSE: USB)

With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.

U.S. Bancorp reported revenues of $7.36 billion, up 5% year on year. This print exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ net interest income estimates but a slight miss of analysts’ tangible book value per share estimates.

Unsurprisingly, the stock is down 5.6% since reporting and currently trades at $51.37.

Is now the time to buy U.S. Bancorp? Access our full analysis of the earnings results here, it’s free.

Best Q4: PNC Financial Services Group (NYSE: PNC)

Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE: PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.

PNC Financial Services Group reported revenues of $6.10 billion, up 9% year on year, outperforming analysts’ expectations by 2.2%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share estimates.

PNC Financial Services Group achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.1% since reporting. It currently trades at $201.99.

Is now the time to buy PNC Financial Services Group? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Citigroup (NYSE: C)

With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE: C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.

Citigroup reported revenues of $19.9 billion, up 2.1% year on year, falling short of analysts’ expectations by 2.7%. It was a slower quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Citigroup delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 7.8% since the results and currently trades at $107.23.

Read our full analysis of Citigroup’s results here.

Wells Fargo (NYSE: WFC)

Founded during the California Gold Rush in 1852 to provide banking and express delivery services to miners and merchants, Wells Fargo (NYSE: WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals and businesses.

Wells Fargo reported revenues of $21.37 billion, up 4.4% year on year. This number lagged analysts' expectations by 1.3%. Overall, it was a slower quarter as it also logged a slight miss of analysts’ revenue estimates and a slight miss of analysts’ net interest income estimates.

The stock is down 18.5% since reporting and currently trades at $76.27.

Read our full, actionable report on Wells Fargo here, it’s free.

JPMorgan Chase (NYSE: JPM)

Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE: JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.

JPMorgan Chase reported revenues of $46.77 billion, up 6.9% year on year. This result met analysts’ expectations. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and tangible book value per share in line with analysts’ estimates.

The stock is down 12.2% since reporting and currently trades at $284.81.

Read our full, actionable report on JPMorgan Chase here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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