Four of the five biggest decliners in financial stocks signaled failure in their latest quarterly results this week, while most of the top five climbers were non-US-based companies.
Cincinnati Financial (NASDAQ: CINF), down 12%fell the most of any financial stock with a market capitalization over $2 billion in the week ended July 29, after the insurer Q2 earnings and revenue lagging Wall Street expectations when loss ratios were high recent periods;
Bread Financial Holdings (NYSE: BFH), formerly Alliance Data Systems, slipped 10%as the credit card issuer also double-failed on Q2 EPS and revenue;
OneMain Holdings (New York Stock Exchange: OMF), which lends to non-preferred customers, fell 9.9% for the week after second-quarter earnings and revenue fell short of expectations and market sentiment soured on the stock amid recession fears;
Financial Colombia (NASDAQ: CLBK), down 8.1%, posted EPS of $0.22 in the second quarter, less than the $0.26 it had earned in the prior year quarter, as it increased its provision for credit losses and revenue non-interest fell; and
Reinsurer RenaissanceRe (NYSE: RNR) Q2 revenue fell short of consensus; total fee income for the quarter fell to $34.3 million from $46.2 million a year earlier.
As for the top five winners, many are non-US banks that may have benefited from the weakness in the US dollar this week. Shares of Grupo Financiero Galicia (GGAL) based in Buenos Aires jumped 27%;
Another Argentinian bank, Banco Macro (BMA) shares increased by 26%;
Publication of the shares of the Scottish bank NatWest Group (NWG) a gain of 13% for the week;
WSFS Financial (WSFS), based in Wilmington, Delaware, increased by 13% the same week, it performed better than expected; and
Brazil fintech XP Inc. (XP) increased by 13% after a report that it is introducing bitcoin (BTC-USD) and ether (ETH-USD) trading for customers.
Over the past five days, the US dollar index fell 0.9% the same week that the Federal Reserve raised its key rate by 75 basis points to control inflation.