Let’s dig into the relative performance of Wells Fargo (NYSE:WFC) and its peers as we unravel the now-completed Q2 diversified banks earnings season.
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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.1%.
In light of this news, share prices of the companies have held steady as they are up 3.3% on average since the latest earnings results.
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 $20.82 billion, flat year on year. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates but a slight miss of analysts’ net interest income estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $84.
Is now the time to buy Wells Fargo? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $21.67 billion, up 8% year on year, outperforming analysts’ expectations by 3.5%. The business had an exceptional quarter with a solid beat of analysts’ EPS and net interest income estimates.

Citigroup pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.1% since reporting. It currently trades at $95.45.
Is now the time to buy Citigroup? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $6.98 billion, up 2% year on year, falling short of analysts’ expectations by 0.7%. It was a slower quarter as it posted a miss of analysts’ net interest income and tangible book value per share estimates.
U.S. Bancorp delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.3% since the results and currently trades at $46.26.
Read our full analysis of U.S. Bancorp’s results here.
Truist Financial (NYSE:TFC)
Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE:TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.
Truist Financial reported revenues of $4.99 billion, up 396% year on year. This print was in line with analysts’ expectations. Zooming out, it was a slower quarter as it produced a miss of analysts’ EPS estimates and net interest income in line with analysts’ estimates.
Truist Financial achieved the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $45.48.
Read our full, actionable report on Truist Financial here, it’s free.
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 $5.66 billion, up 6.7% year on year. This result beat analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ tangible book value per share estimates and a decent beat of analysts’ EPS estimates.
The stock is up 3% since reporting and currently trades at $197.94.
Read our full, actionable report on PNC Financial Services Group 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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