Let’s dig into the relative performance of State Street (NYSE: STT) and its peers as we unravel the now-completed Q2 custody bank earnings season.

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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.7%.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

State Street (NYSE: STT)

Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street (NYSE: STT) provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.

State Street reported revenues of $3.45 billion, up 8.1% year on year. This print exceeded analysts’ expectations by 2.7%. Despite the top-line beat, it was still a mixed quarter for the company with but a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 1% since reporting and currently trades at $111.15.

Read our full report on State Street 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 and a beat of analysts’ EPS estimates.

Voya Financial scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $74.32.

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

Weakest Q2: StepStone Group (NASDAQ: STEP)

Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ: STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.

StepStone Group reported revenues of $237.5 million, up 27.4% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 2.1% since the results and currently trades at $58.80.

Read our full analysis of StepStone Group’s results here.

Cohen & Steers (NYSE: CNS)

Founded in 1986 as a pioneer in real estate investment trusts (REITs), Cohen & Steers (NYSE: CNS) is an investment manager specializing in real estate securities, infrastructure, real assets, and preferred securities for institutional and individual investors.

Cohen & Steers reported revenues of $136.1 million, up 11.8% year on year. This result came in 0.6% below analysts' expectations. It was a slower quarter as it also logged a significant miss of analysts’ EPS estimates.

The stock is down 1.2% since reporting and currently trades at $74.56.

Read our full, actionable report on Cohen & Steers here, it’s free.

Northern Trust (NASDAQ: NTRS)

Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ: NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.

Northern Trust reported revenues of $2.00 billion, down 26.4% year on year. This print surpassed analysts’ expectations by 1.9%. It was a strong quarter as it also logged and a beat of analysts’ EPS estimates.

Northern Trust had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $127.30.

Read our full, actionable report on Northern Trust here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.