Looking back on custody bank stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Invesco (NYSE: IVZ) 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 16 custody bank stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.4%.

While some custody bank stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.

Invesco (NYSE: IVZ)

With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.

Invesco reported revenues of $1.26 billion, up 8.8% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Unsurprisingly, the stock is down 7.2% since reporting and currently trades at $26.56.

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

Best Q4: 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 $1.75 billion, up 3.8% year on year, outperforming analysts’ expectations by 1.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 5.9% since reporting. It currently trades at $27.42.

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

Weakest Q4: 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 $2.01 billion, up 5.7% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue in line with analysts’ estimates.

As expected, the stock is down 1.3% since the results and currently trades at $74.54.

Read our full analysis of Voya Financial’s results here.

Hamilton Lane (NASDAQ: HLNE)

With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ: HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.

Hamilton Lane reported revenues of $198.6 million, up 18% year on year. This print beat analysts’ expectations by 2.4%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The stock is down 13.2% since reporting and currently trades at $122.75.

Read our full, actionable report on Hamilton Lane here, it’s free.

BNY (NYSE: BK)

Tracing its roots back to 1784 when it was founded by Alexander Hamilton, BNY (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 reported revenues of $5.18 billion, up 6.8% year on year. This number topped analysts’ expectations by 0.7%. It was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates.

The stock is down 2.6% since reporting and currently trades at $117.50.

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

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