Looking back on custody bank stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including WisdomTree (NYSE: WT) and its peers.

Custody banks safeguard financial assets and provide services like settlement, accounting, and regulatory compliance for institutional investors. Growth opportunities stem from increasing global assets under custody, demand for data analytics, and blockchain technology adoption for settlement efficiency. Challenges include fee pressure from large clients, substantial technology investment requirements, and competition from both traditional players and fintech firms entering the space.

The 13 custody bank stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 4.9% on average since the latest earnings results.

WisdomTree (NYSE: WT)

Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE: WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.

WisdomTree reported revenues of $112.6 million, up 5.2% year on year. This print fell short of analysts’ expectations by 0.5%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ yield estimates but a miss of analysts’ EBITDA estimates.

“With our acquisition of Ceres Partners—a premier partner to America’s family farmers and a top-five U.S. farmland manager overseeing nearly $2 billion—WisdomTree secures a historically double-digit-return asset class that diversifies our AUM, is accretive, and widens both revenue capture and operating margin. It positions us to raise at least $750 million by 2030, and we see a credible path to managing roughly $10 billion in farmland assets over the next decade—adding a durable private-markets tailwind to our ETP, model-portfolio, and tokenization growth strategy.”

Interestingly, the stock is up 9.8% since reporting and currently trades at $14.56.

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

Best Q2: Voya Financial (NYSE: VOYA)

Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial (NYSE: VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.

Voya Financial reported revenues of $1.9 billion, up 2.2% year on year, outperforming analysts’ expectations by 13.5%. The business had a stunning quarter with a solid beat of analysts’ AUM estimates and a beat of analysts’ EPS estimates.

Voya Financial achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 13.8% since reporting. It currently trades at $77.19.

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

Slowest Q2: Franklin Resources (NYSE: BEN)

Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE: BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.

Franklin Resources reported revenues of $1.59 billion, down 3.7% year on year, falling short of analysts’ expectations by 18.8%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

Franklin Resources delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 2.3% since the results and currently trades at $24.51.

Read our full analysis of Franklin Resources’s results here.

BNY Mellon (NYSE: BK)

Tracing its roots back to 1784 when it was founded by Alexander Hamilton, BNY Mellon (NYSE: BK) is a global financial institution that provides asset servicing, wealth management, and investment services to institutions, corporations, and high-net-worth individuals.

BNY Mellon reported revenues of $5.03 billion, up 9.4% year on year. This print beat analysts’ expectations by 3.9%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates.

The stock is up 11.3% since reporting and currently trades at $106.02.

Read our full, actionable report on BNY Mellon here, it’s free.

Affiliated Managers Group (NYSE: AMG)

Using a partnership approach that preserves entrepreneurial culture at its portfolio companies, Affiliated Managers Group (NYSE: AMG) is an investment firm that acquires stakes in boutique asset management companies while allowing them to maintain operational independence.

Affiliated Managers Group reported revenues of $493.2 million, down 1.4% year on year. This number lagged analysts' expectations by 2.8%. All in all, it was a slower quarter for the company.

The stock is up 12.2% since reporting and currently trades at $236.11.

Read our full, actionable report on Affiliated Managers Group here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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