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Financial stocks managed to rally during the week even as a US government default hangs in the balance. The SPDR Financial Select Sector ETF (NYSEARCA:XLF) increased 2.2%outperforming the S&P 500 (SPX) 1.7% profit.
Many of the biggest climbers were regional banks which fell further when banking tensions erupted in March. In the losers column are two Latin American banks and two Chinese fintechs.
The biggest gain, +41%was noted by Upstart Holdings (NASDAQ:UPST), after he reached an agreement to sell up to $4B of consumer installment loans. The agreement reduces risk to UPST by offloading loans from its balance sheet and gives it the ability to make new loans.
Western Alliance Bank Corporation (New York Stock Exchange:WAL) stock jumped 25% after its latest business update showed its deposits increased by more than $2 billion since the start of the second quarter. He also described as “imminent” the sale of about half of the $6 billion of loans he had reclassified as held for sale in the first quarter of 2023.
Comerica (NYSE:CMA) also participated in the regional meeting of banks, 20% increase;
Bank of Zions (NASDAQ:ZION) won 19%; and
F&G Annuities and Life (New York Stock Exchange: F.G.) increased 14%.
The biggest drop, among financial stocks with a market capitalization of at least $2 billion, was Qifu Technology (NASDAQ:QFIN), formerly 360 DigiTech, sliding 13%. The Shanghai-based fintech is not paying dividends in the first quarter as it changes its dividend policy, and first-quarter results have been missing from the top and bottom lines.
Colombian Bank Grupo Aval Actions and Securities (New York Stock Exchange: GUARANTEE) fell 8.1% for the week.
Hong Kong-based Futu Holdings (NASDAQ: FUTURE) fell 7.1% in the week the fintech announced it was pulling its app from mainland Chinese app stores; as a result, JP Morgan downgraded the stock’s rating to Neutral.
Argentine bank Grupo Financiero Galicia submerged 6.3%; and
Company focused on insurance CorVel (NASDAQ:CRVL) also fell 6.3%.
Earlier on Friday, bank shares fell as Janet Yellen called for more bank mergers.